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Urban Outfitters : Worker at Northampton Urban Outfitters sues company, alleging wage violations

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10/17/2017 | 11:34pm CEST

Oct. 17--A former employee of Northampton's Urban Outfitters clothing store is suing the retailer in U.S. District Court, claiming the store violated federal labor law by failing to pay her overtime wages.

In the suit, Michelle Otero alleges that she was hired as a "department manager" and was treated as an exempt employee, allowing the company to have her work 55 hours per week without paying overtime.

But, the suit claims, she spent most of her work hours performing manual labor like cleaning, folding clothes and unloading shipments -- tasks which legally require the payment of hourly overtime.

"As part of its regular business practice, Defendant intentionally, willfully, and repeatedly engaged in a policy, pattern, and/or practice of violating the [Fair Labor Standards Act] with respect to Plaintiff," the suit says.

It is not the first time that Urban Outfitters has faced lawsuits for allegedly underpaying workers.

Three other department managers sued Urban Outfitters over similar claims in 2013. And in 2015, the company reached a $5 million settlement with workers who alleged overtime and break period violations in class action suits.

Urban Outfitters did not return a request for comment prior to publication.

Otero worked at the Northampton store as a department manager from June 2012 through May 2013, according to the complaint. She regularly worked more than 40 hours per week but was not paid for the excess hours, because she was classified as a salaried employee exempt from the Fair Labor Standards Act.

The FLSA requires that employees receive overtime pay when working more than 40 hours per week, unless their job has certain primary characteristics -- like supervision of other employees, high-level educational requirements or allowances for individual discretion and judgment.

Otero's job had no such responsibilities or privileges, the suit claims. Rather, despite the "manager" in her title, Otero spent most of her time doing manual labor.

The suit also claims that Otero's treatment was part of a broad policy of attempting to minimize labor costs by violating federal law. Urban Outfitters stores had to stay within tight labor budgets, leading managers to have salaried employees like Otero work extra hours without compensation rather than hiring hourly employees to perform manual work, according to the suit.

The store also had Otero report that she only worked 40 hours per week when she actually worked additional hours, the suit claims.

Otero is suing for unpaid wages and overtime compensation, as well as damages for the alleged violations of federal labor law.


(c)2017 MassLive.com, Springfield, Mass.

Visit MassLive.com, Springfield, Mass. at www.masslive.com

Distributed by Tribune Content Agency, LLC.

© Tribune Content Agency, source Regional News

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Financials ($)
Sales 2018 3 531 M
EBIT 2018 255 M
Net income 2018 165 M
Finance 2018 442 M
Yield 2018 -
P/E ratio 2018 16,15
P/E ratio 2019 14,64
EV / Sales 2018 0,60x
EV / Sales 2019 0,53x
Capitalization 2 562 M
Duration : Period :
Urban Outfitters, Inc. Technical Analysis Chart | URBN | US9170471026 | 4-Traders
Technical analysis trends URBAN OUTFITTERS, INC.
Short TermMid-TermLong Term
Income Statement Evolution
Mean consensus HOLD
Number of Analysts 26
Average target price 22,1 $
Spread / Average Target -5,2%
EPS Revisions
Richard A. Hayne Chairman & Chief Executive Officer
David W. McCreight President
Calvin B. Hollinger Chief Operating & Administrative Officer
Francis John Conforti Chief Financial Officer
Scott A. Belair Independent Director
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