Smart & Final Settles Compensation Suit

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Smart & Final Inc. has settled a class-action lawsuit that alleges the company didn’t properly compensate store employees over a six-year period, the company said Wednesday.


The City of Commerce-based food service warehouse chain said it expects to take a $19 million pre-tax charge in the third quarter to cover settlement costs, including attorneys’ fees and administrative expenses. The settlement agreement is scheduled to receive preliminary approval Oct. 5 in Orange County Superior Court.


The suit, filed on behalf of 13,000 current and former store employees, alleged the company failed to correctly pay for overtime and compensate during meal and rest periods, among other compensation matters. Any claims will be reviewed by a third-party administrator appointed by the court.


In settling the case, Smart & Final denied any wrongdoing.


Smart & Final also recently settled at least two other class-action lawsuits filed on behalf of its current and former employees. One suit alleged the company misclassified the status of store managers and assistant managers, while the other accused the company of improperly calculating commission payments.


Under the terms of those settlements, Smart & Final paid $7.6 million into a fund during the first quarter of 2004. The company also issued $1.5 million in scrip redeemable at stores.

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