Arias Ozzello & Gignac LLP

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CVS Pharmacy Class Action Seeks Backpay for Overtime and Missed Meal Breaks for Store Managers Who Were Misclassified as Exempt

Thursday, February 18, 2010

A class action against CVS Pharmacy is currently pending in Superior Court in Los Angeles alleging that CVS has for years neglected to provide overtime compensation and meal and rest breaks to its salaried Store Managers in California. The lawsuit claims that when CVS bought the existing Sav-on drugstores in California in June of 2006 and expanded its presence in California to several hundred stores, CVS began a deliberate effort to squeeze more labor hours out of its salaried Store Managers.  The company did this by decreasing the number of labor hours available to schedule hourly employees, thereby forcing Store Managers to work longer hours and to spend a disproportionate amount of their time on non-managerial tasks, such as unloading and unpacking freight, stocking and straightening shelves, cashiering, building displays and endcaps, and cleaning the store.

The process of decreasing the amount of labor available to CVS Store Managers to run their stores is still ongoing, and each year the labor budgets get smaller and smaller, making it ever more difficult for Store Managers to “make payroll” without rolling up their sleeves and spending the majority of their time on manual work intended for hourly employees.  In fact, since it acquired Longs Drugs in 2008, making CVS the largest drugstore chain in California, CVS appears to have accelerated its efforts to save on labor costs in this fashion, forcing Store Managers to work grueling hours performing mostly non-managerial duties.

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