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A major victory for grocery store workers in Illinois has been sealed, as Mariano's OT $3.3M Suit concludes with a federal judge approving a substantial settlement.

U.S. District Judge Matthew Kennelly signed off Tuesday on a $3.3 million deal resolving claims by current and former Mariano’s meat, bakery, and deli managers who alleged they were misclassified as exempt from overtime pay. The approval came after a brief remote hearing, avoiding a trial that had been slated for March.

Allegations of Misclassification

Under the Fair Labor Standards Act (FLSA), employees performing true managerial duties can be exempt from overtime pay. But plaintiffs David DePyper, a meat manager from 2014 to 2019, and Kate Milashus, a bakery manager from 2018 to 2019, argued in their April 2020 lawsuit that their day-to-day responsibilities were largely manual labor rather than managerial.

The lawsuit contended that the managers did not engage in hiring, firing, disciplining, or directing staff, and company policies allegedly prevented them from recording all hours worked. The plaintiffs claimed Mariano’s misclassification denied them the overtime pay they were legally owed.

Legal Battles and Collective Action

The case first gained momentum in November 2020, when an Illinois federal judge found that the plaintiffs had potentially shown violations of the FLSA and Illinois wage laws, conditionally granting class certification.

In April 2022, deli and hot foods manager Sherie Pletsch filed a similar lawsuit, which was later consolidated under a conditional collective certification. Mariano’s attempted to decertify the collective, but Judge Kennelly rejected the motion in August, noting that differences in duties cited by the company did not negate the claims.

Settlement Details

The $3.3 million settlement, finalized in January following October mediation and subsequent negotiations, ensures the average plaintiff will recover roughly $20,000 after attorney fees and costs. According to the plaintiffs, the agreement is a “substantial recovery” and a better alternative to the uncertainties of a trial, including disputes over liability, hours worked, and calculation of unpaid overtime.

Plaintiffs emphasized that the settlement was reached after five years of litigation, extensive discovery, and expert depositions, giving both sides ample opportunity to evaluate the merits of the claims and defenses.

“The settlement here provides a meaningful and guaranteed benefit to all plaintiffs while enabling all parties to avoid the burdens of continued litigation,” the plaintiffs said. They also noted the deal aligns with the FLSA’s remedial purpose without imposing undue obligations on Mariano’s.