Dick’s Sporting Goods has been hit with a new lawsuit.
In a filing in Pennsylvania district court on Monday, several Dick’s assistant managers accused the Coraopolis, Pa.-based retailer of violating the Fair Labor Standards Act and state regulations. The workers claim that they were classified as overtime exempt by the company, but were eligible for time and a half under state and federal laws. The workers are asking for overtime pay and other damages dating back three years.
“Dick’s required [assistant managers] to work more than 40 hours per workweek without paying them any overtime compensation and [assistant managers] did in fact work more than 40 hours per workweek without receiving overtime compensation,” the complaint reads. “[Dick’s] is aware or should have been aware that federal law required it to pay [assistant managers] overtime premiums for hours worked in excess of 40 per workweek.”
In 2015, Dick’s Sporting Goods settled a similar class-action suit filed by assistant managers seeking overtime pay restitution. The sporting goods chain reached an agreement to pay up to $10 million in a settlement fund. In 2011, Dick’s agreed to pay current and former employees $15 million to settle a class-action suit that alleged the company had violated overtime law and forced staff to work during breaks without receiving compensation.
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Amid the pandemic, all 800 Dick’s locations nationwide closed in mid-March. The company furloughed the “majority” of its employees effective April 12. Small teams of store, distribution center and corporate office staff continued to work, although several of the company’s employees took pay cuts. Chairman and CEO Edward Stack and president Lauren Hobart have been declining their salaries — other than an amount covering their benefits — since March 29. In an additional step to boost liquidity, Dick’s announced in April the offering of $500 million in convertible senior notes, which mature in 2025.