Ann Taylor Agrees to Pay $6.5 Million to Settle Overtime Misclassification Suits

Published March 15, 2006

Ann Taylor Stores has agreed to pay $6.5 million to settle two class action lawsuits charging that the company improperly classified store managers in California as exempt from overtime and violated meal and rest period rules.

The settlement will affect up to 800 store managers, senior assistant managers, and assistant managers in 95 Ann Taylor stores in the state. In connection with the settlement, Ann Taylor did not admit to violations, stating that it settled to avoid the significant costs and time of protracted litigation. The settlement is awaiting approval by the Los Angeles superior court.