MATTHEWS, N.C., June 29 /PRNewswire-FirstCall/ -- Family Dollar Stores,
Inc. (NYSE: FDO) said today that the Judge in a trial in Tuscaloosa, Alabama
declared a mistrial because the jurors were unable to reach a verdict in a
case brought by some former and current store managers of Family Dollar. The
plaintiffs claimed that Family Dollar should classify its store managers as
hourly employees entitled to overtime pay. The Company believes that it has
properly classified its store managers as salaried managers who are exempt
from overtime pay under federal law.
Howard R. Levine, Chairman and Chief Executive Officer of Family Dollar,
said, "We appreciate the jurors' time and effort in this case, although we
regret that they were unable to reach a decision in our favor. We believe we
are correct in our interpretation of how our store managers should be
classified. Our store managers are significant contributors to the success
of our stores. We have said that we will fight for what we believe is right
and will continue to do so."
Under the Fair Labor Standards Act employees are exempt from overtime pay
if they meet certain criteria. These criteria include a minimum salary,
responsibilities for managing a business unit, supervising at least two other
individuals, and, after the adoption of new regulations in August 2004,
providing input into hiring, firing and management of personnel. Two other
federal courts have found that Family Dollar store manager positions meet
these criteria, as has the US Department of Labor.
Family Dollar Stores, Inc. operates a rapidly expanding discount store
chain of more than 5,700 stores in 44 states ranging as far northwest as
Idaho, northeast to Maine, southeast to Florida and southwest to Arizona.
SOURCE Family Dollar Stores, Inc.
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Related links:
http://www.familydollar.com
Company News On-Call:
http://www.prnewswire.com/comp/300875.html
CONTACT:
Kiley Rawlins, Divisional Vice President of
Family Dollar Stores, Inc., +1-704-849-7496
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