Saks Fifth Avenue 2010 Annual Report Download - page 16

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Item 3. Legal Proceedings.
On February 2, 2011, the plaintiffs in Dawn Till and Mary Josephs v. Saks Incorporated et al, filed a
complaint, with which the Company was served on March 10, 2011, in a purported class and collective action in
the U.S. District Court for the Northern District of California. The complaint alleges that the plaintiffs were
improperly classified as exempt from the overtime pay requirements of the Fair Labor Standards Act (“FLSA”)
and the California Labor Code and that the Company failed to pay overtime, provide itemized wage statements
and provide meal and rest periods. On March 8, 2011, the plaintiffs filed an amended complaint adding a claim
for penalties under the California Private Attorneys General Act of 2004. The plaintiffs seek to proceed
collectively under the FLSA and as a class under the California statutes on behalf of individuals who have been
employed by OFF 5TH as Selling and Service Managers, Merchandise Team Managers, or Department
Managers. The Company believes that its managers at OFF 5TH have been properly classified as exempt under
both Federal and state law and intends to defend the lawsuit vigorously. It is not possible to predict whether the
court will permit this action to proceed collectively or as a class.
In addition to the litigation described in the preceding paragraph, the Company is involved in legal
proceedings arising from its normal business activities and has accruals for losses where appropriate.
Management believes that none of these legal proceedings will have a material adverse effect on the Company’s
consolidated financial position, results of operations, or liquidity.
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