Federal judge rules against Pizza Hut in overtime case

Sept. 30, 2004

NEWPORT BEACH, Calif. — A U.S. District Court denied Pizza Hut's motions for reconsideration and immediate appeal of a previous ruling on a class-action filed for unpaid overtime by current and former Restaurant General Managers and Restaurant Training Managers.

According to a news release from plaintiffs' attorneys Castle, Petersen & Krause LLP, on July 15, U.S. District Court for the Central District of California Judge Terry J. Hatter, Jr., ruled that Pizza Hut, Inc. misclassified its RGMs and RTMs as exempt employees, even though the majority of their working time was spent on non-managerial duties.

Former Pizza Hut RGM Ann Coldiron is the only plaintiff named in the case, in which she claims she and similarly situated current and former RGMs and RTMs worked in excess of 50 hours per week without overtime pay (see Judge finds for plaintiff in labor lawsuit against Pizza Hut).

Pizza Hut's appeal of the ruling was denied on Sept. 17, allowing the case to proceed toward determining overtime pay owed the class's litigants.

According to the release, Pizza Hut RGMs and RTMs who have joined this action could receive as much as $100,000 each. Should all 3,100 approved litigants participate in the action, Pizza Hut could be liable for about $300 million.

Read related Pizza Hut stories by clicking here.

Topics: Pizza Hut

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