Ulta agrees $3,650,000 settlement over unpaid overtime

Published: 9-Aug-2016

Beauty retailer reaches agreement in class action suit on overtime

  • Ulta reaches settlement on overtime lawsuit

  • Retailer will pay $3,650,000 settlement

  • 230 current and former store managers are involved in case

  • Ulta Beauty has agreed a settlement of $3,650,000 in a dispute over unpaid overtime for 230 current and former store managers.

    All the store managers involved in the lawsuit were or still are employed in California. The employees alleged that Ulta had incorrectly classified them as exempt from the overtime requirements stipulated by the state’s laws.

    The plaintiffs alleged that Ulta understaffed its stores, forcing store managers to work longer hours doing additional, non-managerial work such as shelf-stocking, cleaning, managing tills and unloading stock from trucks.

    The group, employed from September 2011 to September 2016, said that these additional tasks meant that they were often forced to skip rest breaks and work additional hours without any compensation.

    Ulta has now agreed to pay for all unpaid overtime, as well as attorney fees and settlement costs accrued by the group of employees.

    Jennifer Liu, Co-counsel for the plaintiffs at The Liu Law Firm, commented on the announcement: “We are very pleased with the settlement and believe it is an excellent result for Ulta Store Managers.”

    Gary Grunfeld, Co-counsel for the plaintiffs at Rosen Bien Galvan & Grunfeld LLP, added: “The settlement appropriately acknowledges the long hours its store managers have put into making Ulta’s California stores so successful.”

    Employers in California are required by state law to pay their staff one-and-a-half times the regular rate when they have worked for more than eight hours a day. If any staff work more than 12 hours in one day, this must be paid at double the usual rate.

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