BJ's Wholesale Club (NYSE: BJ) announced today that the Company has recorded an $11.7 million pre-tax charge in connection with settling a claim relating to the classification of various employees as exempt from overtime wages.
Under the settlement, which still must be approved by the federal court, certain current and former mid-level managers will be eligible to receive payments to compensate them for particular hours worked in prior years.
"BJ's Wholesale Club values the role each team member plays in serving our Members and helping our Company succeed and grow," said Sue Hoffman, Senior Vice President and Chief Personnel Officer at BJ's Wholesale Club. "As such, it was important that we move quickly to address and resolve this matter."
The issue of job classification faces nearly all employers in the retail industry. BJ's is compliant with applicable federal and state wage and hour laws. The settlement of the lawsuit is not an admission on the part of the Company of any wrongdoing.
The number of employees who will receive compensation and the amount of each settlement will not be known until the Court proceeds with final approval of the settlement terms and all employee claims are submitted. BJ's Wholesale Club will work with the settlement administrator in the months to follow as the parties establish the process through which the settlement amount will be allocated and the amount each eligible employee will receive is determined.
SOURCE BJ's Wholesale Club
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