Dollar Tree 2012 Annual Report Download - page 43
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Please find page 43 of the 2012 Dollar Tree annual report below. You can navigate through the pages in the report by either clicking on the pages listed below, or by using the keyword search tool below to find specific information within the annual report.Notes to Consolidated Financial Statements
Inthesummerandfallof2011,vecollectiveaction
lawsuitswereledagainsttheCompanyinfederalcourts
inGeorgia,Colorado,Florida,MichiganandIllinoisby
dierentassistantstoremanagers,eachallegingheorshe
wasforcedtoworkotheclockinviolationofthefederal
FairLaborStandardsAct.Plaintisalsoassertedvarious
state law claims for which they seek class treatment.
eMichigancaseiscurrentlystayed.eFloridacase
has been transferred to the U.S. District Court for the
EasternDistrictofVirginiawhichthereafterentered
an Order staying the case. In the Georgia case the state
law claims were dismissed and the case then transferred
totheU.S.DistrictCourtfortheEasternDistrictof
Virginia;theFairLaborStandardsActclaimsremain
with motions to dismiss by the Company pending. In the
Colorado case the statewide class claims were dismissed.
eCourtconditionallycertiedundertheFairLabor
Standards Act a class of all assistant store managers who
workedforDollarTreefromJuly16,2008tothepresent.
Noticewassenttopotentialclassmembersand2,201
elected to opt-in. Discovery is now on-going pursuant to
a scheduling Order of the Court and the case has been
assignedaMay2014trialdate.eIllinoiscaseinaddi-
tion to assistant store managers, also included a putative
class of all other hourly store associates, and made the
same allegations on their behalf. e Illinois case was
transferredtotheEasternDistrictofVirginiainJuneand
theVirginiafederaljudgeruledthatallclaimsmadeon
behalf of assistant store managers under the Fair Labor
Standards Act should be dismissed on the basis those
claimscouldbeadjudicatedintheColoradocase.e
assistant store manager class claims based on state law
were dismissed. e Court however, did conditionally
certify under the Fair Labor Standards Act a class of all
hourly sales associates who worked for Dollar Tree from
October2,2009tothepresent.Noticetotheputative
classwassentand6,276associateselectedtoopt-in,
approximately3%ofthepotentialclass.Discoveryhas
recentlycommenced.Notrialdatehasbeenestablished.
InMay2012,threeassociateswhowereformerly
employedattheCompany’sdistributioncenterinJoliet,
IllinoisledaRule23classactionlawsuitinfederalcourt
in Illinois alleging that at the time of their termination
of employment, they failed to receive compensation
fortheiraccruedpaidtimeo.eybroughtthiscase
on behalf of themselves and those former associates
similarly situated. At the request of the parties, the
casewasstayedandreferredtoaU.S.MagistrateJudge
for a settlement conference. A settlement was reached
andpreliminarilyapprovedbytheCourt.Noticeofthe
proposed settlement was issued to the individual poten-
tialclassmemberswith113ofthemreturningcompleted
claims forms. e Court conducted a fairness hearing on
February27andapprovedthesettlement.esettlement
processwillnowbeeectuated.esettlementamount
is immaterial and has been included in the accompanying
consolidatednancialstatements.
InJuly2012,aformernon-exempthourlyassociate
who alleges his primary duty was to work a cash register,
onbehalfofhimselfandthosesimilarlysituated,led
a Complaint under the California Private Attorneys
GeneralAct(“PAGA”),inaCaliforniastatecourt,alleging
the Company failed to provide suitable seating at its cash
registers as allegedly required by state law. e Company
removedthecasetofederalcourtandleditsAnswerto
the Complaint. Discovery is presently under way and the
casehasbeenscheduledfortrialinJuly2013.
InJuly2012,aformerassistantstoremanager,on
behalfofhimselfandthosesimilarlysituated,ledaclass
action Complaint in a California state court, alleging the
Companyfailedtoprovidepaid,duty-free10minute
rest breaks to assistant store managers who worked for
periods in excess of three and one-half hours. e alleged
relevanttimeperiodisJuly13,2008tothepresent.
Dollar Tree removed the case to federal court and
plaintihasledamotionseekingremandtostatecourt.
Initial discovery has commenced.
InFebruary2013,aformerassistantstoremanager
onbehalfofhimselfandthosesimilarlysituatedledin
a California federal court a representative action claim
under PAGA. He alleges the Company failed to provide
meal and rest periods, failed to pay minimum, regular
and overtime wages, failed to maintain accurate time
records and wage statements, and failed to pay wages
due upon termination of employment. e Company
hasjustbegunitsinvestigationoftheallegations
contained in the Complaint.
e Company will vigorously defend itself in these
matters. e Company does not believe that any of
these matters will, individually or in the aggregate, have
amaterialeectonitsbusinessornancialcondition.
e Company cannot give assurance, however, that one
ormoreoftheselawsuitswillnothaveamaterialeect
on its results of operations for the period in which they
are resolved. Based on the information available to the
Company, including the amount of time remaining before
trial,theresultsofdiscoveryandthejudgmentofinternal
and external counsel, the Company is unable to express
an opinion as to the outcome of these matters which are
not settled and cannot estimate a potential range of loss.
2012AnnualReport41