May 14, 2009

Casey's overtime settlement awaits OK by judge

The $12.1 million proposal is based on unpaid work hours from 2005 to 2008.

By JEFF ECKHOFF
jeckhoff@dmreg.com

A proposed $12.1 million settlement of two lawsuits over unpaid overtime at Casey's General Stores will net an average $290 for most of the aggrieved employees involved, according to a scenario outlined in federal court.

Assistant managers would receive more.

Lawyers are scheduled to meet in Des Moines on Monday to ask a federal judge to approve settlements in two class-action court cases. Documents say the cases involve an estimated 7,800 assistant managers and 76,000 cooks or cashiers who allegedly were required to do off-the-clock work for Casey's between 2005 and the end of 2008. The assistant managers were considered hourly employees.

Casey's of Ankeny operates about 1,460 stores in nine Midwestern states.

An attorney for the plaintiffs declined to discuss the case, citing orders by U.S. District Judge Robert Pratt not to talk until after Monday's court hearing. The hearing is the first of several procedural steps required to take place in the next few months before any money can be paid.

Court papers say the convenience store chain has agreed to pay $11.7 million to named plaintiffs, their lawyers and other similarly situated Casey's workers under a deal announced last week.

Roughly one-third of the money, plus expenses, would go to lawyers, according to the agreement. If Pratt approves, the rest would be allocated based on the time worked at Casey's — $50 a week for assistant managers and $11 a week for other employees, according to court papers.

Based on workers' average term of service and an estimate that 10 percent of potentially affected workers would file claims, documents predict the settlement would lead to an average back overtime check of $1,875 for assistant managers and $290 for cooks/cashiers.

Named plaintiffs would get an extra $10,000, and an additional $1,000 would go to the handful of employees who have given sworn testimony in the case.

A proposed timeline contained in court documents would give lawyers until June 15 to notify everyone who worked for Casey's during the relevant time periods. Workers would have two months more to file claims.