Dick’s Sporting Goods Lawsuit: Why The Retailer Is Being Sued By Its Assistant Store Managers

Dick’s Sporting Goods (DKS) has found itself embroiled in a lawsuit filed by its stores’ assistant managers over overtime payments.

The lawsuit, filed by 18 assistant managers in 14 states, claims that Dick’s violated several laws in regards to unpaid overtime, KDKA, a CBS affiliate out of Pittsburgh, reported.

The class-action suit contends that the sporting goods retailer classified the assistant managers as “exempt” from overtime payments, which the complaint said is a violation of state and federal laws.

Attorney Greg I. Shavitz from the law firm of Shavitz Law Group, P.A., told the news outlet in a statement, “Dick’s Sporting Goods settled a similar overtime lawsuit for assistant store managers nationally for $10 million in 2016. The lawsuit claims Assistant Store Managers continue to work long uncompensated overtime hours.”

The plaintiffs in the lawsuit are reportedly seeking overtime pay and damages dating back three years.

Dick’s Sporting Goods closed all of its stores in March due to the coronavirus pandemic. In April, the company furloughed “a significant number” of its employees, saying it made the decision with “heavy heart.”

The company reported an increase in consolidated same-store sales for fiscal 2019 of 3.7% and a consolidated net income of $297.5 million for the year.

Shares of Dick's Sporting Goods stock were up 1.86% as of 1:39 p.m. EDT on Wednesday.