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More Class-Action Suits in the Pipeline
By John Millrany - July 17, 2001

The spigot continues to pour forth settlements from overtime-compensation suits with one of the latest resolutions involving Sparkletts and Alhambra bottled water and those natty-looking, uniformed delivery guys.

There are literally hundreds of similar overtime suits in the California pipeline.

Taking the form of class-action claims, the contests center on whether companies are cheating employees on overtime pay.

In a settlement decided July 12, more than 700 deliverers will receive 6.6% of their total earnings between April 1996-April 2000 in a ruling that amounts to $8 million in restitution assigned to Damone Waters of North America, which owns Sparkletts and Alhambra. A company statement said, “We believe settling the lawsuit was in the best interest of the company and employees.

Pertinent to the resolution is the California law, which exempts paying overtime to workers who spend more than 50% of their time in sales. The company reported that it has converted several positions to nonexempt status (subject to overtime premiums) and began paying the deliverers hourly wages.

As recently reported by adjustercom.com, Farmers Insurance Exchange was slapped with stiff penalties over overtime issues, with 21st Century Insurance facing its own class-action contest brought by two employees.

 
 

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