April 7, 2010
Poultry company Pilgrim’s Pride Corporation will pay $10 million to settle the class action lawsuit which accused it of failing to pay overtime to over 8,000 employees in 11 states. Cohen Milstein attorneys, who represent the plaintiffs, say that the deal will allow class members to recover about 85 percent of the back pay that they sought.
Judge Harry F. Barnes of the U.S. District Court for the Western District of Arkansas signed off on the settlement Friday, finding it “fair, reasonable and allowable” under the Fair Labor Standards Act (FLSA).
Cohen Milstein partner, Joseph Sellers, said the settlement was “very good for the workers.”
Mr. Sellers said part of the reason for settling was that the plaintiffs had discovered during the case that Pilgrim’s Pride had been reducing employees’ hours during the class period, making the number of employees and workweeks subject to overtime less than they believed.
Excerpted from “Pilgrim’s Pride Strikes $10M Deal in FLSA Suit” (Law360; April 7, 2010)