CHAINS and BUSINESS

CVS settles overtime suit with Alabama R.Ph.s

CVS Corp. has agreed to settle a lawsuit by current and former CVS pharmacists in Alabama regarding overtime, according to a 10-Q form filed with the Securities and Exchange Commission (SEC). The suit was filed in the Federal District Court of Alabama on Nov. 21, 2000, as Hill vs. CVS Services Inc.

Todd Andrews, a CVS spokesman, said, "We have no statement regarding the settlement beyond what's been published by the company."

The company reported in an earlier SEC filing that the pharmacists said they shouldn't be treated as salaried, exempt employees and that CVS violated the Fair Labor Standards Act (FLSA) by not paying them time-and-a-half for hours worked over 40 in any given week. The plaintiffs sought recovery of unpaid overtime as well as payment of liquidated damages, expenses, and attorney's fees.

A CVS pharmacist who asked to remain anonymous told Drug Topics that pharmacists where he worked were not notified that the lawsuit had been settled, but when they received their paychecks recently on a Saturday, they were pleasantly surprised to find a fatter check. "In the paychecks, there was extra money—lots of extra money. Where the extra money showed up on the paycheck was under "adjustment." The rates range from $4,000 to $75,000. We have heard nothing directly from the lawyers yet. We figured this out on a Saturday, and there's no one around on Saturday. We're trying to get an answer out of corporate." He cautioned, though, that only pharmacists who opted into the lawsuit received the settlement funds. Those who chose not to take part in the suit did not stand to gain from it.

Sandra Levy

Sandra Levy. CVS settles overtime suit with Alabama R.Ph.s.

Drug Topics

2002;23:82.