2000 Litigation
This class action, filed in 2000, alleged mis-classification of Factory 2-U's California Store Managers and Assistant Store Managers as exempt from overtime pay. In 2001, the Alameda County Superior Court certified two sub-classes (Managers and Assistant Managers) and, in 2002, granted final approval to a settlement of the action for $2 million.
2010 Litigation
This putative class action lawsuit is pending in Alameda County Superior Court and alleges that Factory 2-U unlawfully (1) misclassifies its California Store Managers as exempt from overtime pay and compensation for missed meal and rest periods and (2) fails to provide meal and rest periods to its hourly retail employees.
If you want to learn more about the case, click here to read the Complaint.