Frito-Lay to Settle Wage-and-Hour Class Action for $1.6 Million
Subject to court approval, Frito-Lay will pay $1.6 million to settle wage-andhour claims filed on behalf of current and former employees who deliver its products to stores and arrange the store displays. Elliott v. Rolling FritoLay Sales, LP, No. 11-1730 (C.D. Cal., filed November 9, 2011). A hearing on the plaintiff’s motion for preliminary approval will be held December 23, 2013.
The plaintiff alleged that Frito-Lay did not pay all the wages owed for overtime
hours worked, provide duty-free meal periods and rest breaks, provide
accurate itemized wage statements, or pay all wages due on cessation of
employment to its route sales associates (RSAs), merchandisers and detailers.
According to the plaintiff, Frito-Lay calculated overtime pay “using an illegal
fluctuating workweek rather than California’s mandated forty hours workweek.
The effect of utilizing the fluctuating workweek is that the more hours
Plaintiff and RSAs work in excess of forty hours, the lower their overtime rates
of pay.” The plaintiff also contended that the company’s common scheduling
policy “deprived Merchandisers and Detailers in practice of the ability to take
timely breaks free from work obligations.”
While Frito-Lay denies liability, it agreed to establish a settlement that will net an estimated 4,000 employees some $1 million after attorney’s fees, costs and enhanced payouts are deducted. Class member claims will be determined using a point system based on a value for each workweek of active employment. Any funds not distributed from valid claims submitted will be provided as an additional award to class claimants. The motion for approval contends that the terms are reasonable, the agreement was reached after extensive discovery and negotiation, and the legal and factual issues raise some uncertainties for both the plaintiff and defendant.
