A class action complaint has been filed in Superior Court of New Jersey against Bed Bath & Beyond, Inc. (“Bed Bath & Beyond”) alleging the retailer failed to properly pay certain employees for over-time for a two-year period.

Bed Bath & Beyond’s Alleged Overtime Calculations

According to the complaint, Bed Bath & Beyond wrongly categorized Department Managers, Assistant Store Managers, and Customer Service Representatives as exempt employees.  Had they been properly categorized, they would have been paid one and a half times their rate for hours worked in excess of 40 hours per week as required by New Jersey law.  Instead of using the required calculations, Bed Bath & Beyond used a “Fluctuating OT” formula to calculate overtime wages.

What’s wrong with the “Fluctuating OT” formula?

According to the complaint, the Fluctuating OT formula denied employees pay for all of their hours worked and denied them wages in accordance with New Jersey law.  The Fluctuating OT formula calculated overtime wages based on the following formula:

base weekly salary
all hours worked/ 2 × all hours worked over 40 in the week = additional pay

Based on the information supplied in the complaint, an employee who earned a weekly salary of $700 who worked 50 hours in a week should earn $262.50 in overtime pay using the proper formula. Under the Fluctuating OT formula, however, that same employee only earns $70.00 in overtime.

Who may have been affected?

The complaint filed in New Jersey applies to individuals employed by Bed Bath & Beyond who worked in New Jersey as either Department Managers, Assistant Store Managers, or Customer Service Representatives within the last two years who worked over 40 hours per week and were not paid one and a half times their rate for those hours beyond 40.

Bed Bath and Beyond employees in states with laws similar to New Jersey may also have been affected if their overtime wages were based on the Fluctuating OT formula.  Similarly, although the complaint refers specifically to Department Managers, Assistant Store Managers, and Customer Service Representatives, anyone who was not paid properly for their overtime may also have been wrongly categorized as exempt employees by Bed Bath & Beyond.

What can those who may have been affected do?

The Kehoe Law Firm is ready to help.  Current and former employees of Bed Bath & Beyond who believe they have been denied proper overtime wages can speak to an attorney for a free, no-obligation consultation by calling Michael Yarnoff, Esq., (215) 792-6676, Ext. 804, or sending an e-mail to [email protected].

Kehoe Law Firm, P.C. is a multidisciplinary, plaintiff–side law firm dedicated to protecting investors and consumers from corporate fraud, negligence, and other wrongdoing. Driven by a strong and principled sense of social responsibility and obtaining justice for the aggrieved, Kehoe Law Firm, P.C. represents plaintiffs seeking to recover investment losses resulting from securities fraud, breaches of fiduciary duty, corporate wrongdoing or malfeasance, those harmed by anticompetitive practices, and consumers victimized by fraud, false claims, deception or data breaches.  Together, the partners of the Kehoe Law Firm, P.C. have spent more than 30 years prosecuting precedent-setting securities and financial fraud cases in federal and state courts on behalf of institutional and individual clients.