Company News

Split Decision for Stewart's Shops

Judge dismisses some wage claims, upholds others; both sides optimistic

ALBANY, N.Y. -- Federal District Court Judge Thomas J. McAvoy has dismissed some claims and upheld others brought by three former employees of Stewart's Shops convenience stores who allege that the retailer has violatedwage laws, according to court documents.

Stewart's Shops (CSP Daily News / Convenience Stores / Gas Stations)

The claims included minimum-wage pay and overtime pay for "gap time" or pre- and post-shift-change overlaps; meal breaks; work performed during breaks; off-the-clock work; post-store-closing work; errands relating to the business such as bank runs and store-supply runs without reimbursement for mileage; "call-in pay" for unscheduled shifts and meetings; and more.

Current and former employees have filed a proposed class-action lawsuit seeking in excess of $20 million dollars in alleged unpaid wages, punitive damages and statutory penalties against Stewart's Shops Corp. Stewart's Shop denied liability in the case and filed a motion to dismiss all claims against it.

On March 2, 2015 Federal District Court Judge Thomas J. McAvoy issued a decision on the motion. He decided that some but not all of the specific claims of individual plaintiffs will proceed to the next phase of the litigation.

"We are pleased with the judge's decision thus far, but it is too premature to declare victory. We are optimistic about the pending litigation," Stewart's Shops spokesperson Maria D'Amelia told CSP Daily News. "Stewart's Shops has remained confident all along; striving to treat and pay its partners fairly."

"I would classify it as another step forward," attorney Ryan M. Finn of E. Stewart Jones Hacker Murphy LLP, who is representing the employees, told The Albany Business Journal. "It's not a complete victory until the people in the class get paid what they are owed from Stewart's, but I think it's an important step along the way."

The proposed class-action case is slated for the Northern District of New York Federal District Court (Docket Number 7:14-cv-33). The case seeks class-action status for approximately 4,500 current and former employees of Stewart's Shops who allege they were deprived of pay for hours worked. To date, 30 individuals have joined the suit but that number is expected to grow if the court grants permission to send out a class notice to all potentially affected current and former employees.

The Saratoga Springs, N.Y.-based chain operates 332 convenience stores in Upstate New York and Vermont and has annual sales of $1.6 billion.

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