Dollar Tree 2012 Annual Report Download - page 43

Notes to Consolidated Financial Statements
Inthesummerandfallof2011,vecollectiveaction
lawsuitswereledagainsttheCompanyinfederalcourts
inGeorgia,Colorado,Florida,MichiganandIllinoisby
dierentassistantstoremanagers,eachallegingheorshe
wasforcedtoworkotheclockinviolationofthefederal
FairLaborStandardsAct.Plaintisalsoassertedvarious
state law claims for which they seek class treatment.
eMichigancaseiscurrentlystayed.eFloridacase
has been transferred to the U.S. District Court for the
EasternDistrictofVirginiawhichthereafterentered
an Order staying the case. In the Georgia case the state
law claims were dismissed and the case then transferred
totheU.S.DistrictCourtfortheEasternDistrictof
Virginia;theFairLaborStandardsActclaimsremain
with motions to dismiss by the Company pending. In the
Colorado case the statewide class claims were dismissed.
eCourtconditionallycertiedundertheFairLabor
Standards Act a class of all assistant store managers who
workedforDollarTreefromJuly16,2008tothepresent.
Noticewassenttopotentialclassmembersand2,201
elected to opt-in. Discovery is now on-going pursuant to
a scheduling Order of the Court and the case has been
assignedaMay2014trialdate.eIllinoiscaseinaddi-
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
transferredtotheEasternDistrictofVirginiainJuneand
theVirginiafederaljudgeruledthatallclaimsmadeon
behalf of assistant store managers under the Fair Labor
Standards Act should be dismissed on the basis those
claimscouldbeadjudicatedintheColoradocase.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
October2,2009tothepresent.Noticetotheputative
classwassentand6,276associateselectedtoopt-in,
approximately3%ofthepotentialclass.Discoveryhas
recentlycommenced.Notrialdatehasbeenestablished.
InMay2012,threeassociateswhowereformerly
employedattheCompany’sdistributioncenterinJoliet,
IllinoisledaRule23classactionlawsuitinfederalcourt
in Illinois alleging that at the time of their termination
of employment, they failed to receive compensation
fortheiraccruedpaidtimeo.eybroughtthiscase
on behalf of themselves and those former associates
similarly situated. At the request of the parties, the
casewasstayedandreferredtoaU.S.MagistrateJudge
for a settlement conference. A settlement was reached
andpreliminarilyapprovedbytheCourt.Noticeofthe
proposed settlement was issued to the individual poten-
tialclassmemberswith113ofthemreturningcompleted
claims forms. e Court conducted a fairness hearing on
February27andapprovedthesettlement.esettlement
processwillnowbeeectuated.esettlementamount
is immaterial and has been included in the accompanying
consolidatednancialstatements.
InJuly2012,aformernon-exempthourlyassociate
who alleges his primary duty was to work a cash register,
onbehalfofhimselfandthosesimilarlysituated,led
a Complaint under the California Private Attorneys
GeneralAct(“PAGA”),inaCaliforniastatecourt,alleging
the Company failed to provide suitable seating at its cash
registers as allegedly required by state law. e Company
removedthecasetofederalcourtandleditsAnswerto
the Complaint. Discovery is presently under way and the
casehasbeenscheduledfortrialinJuly2013.
InJuly2012,aformerassistantstoremanager,on
behalfofhimselfandthosesimilarlysituated,ledaclass
action Complaint in a California state court, alleging the
Companyfailedtoprovidepaid,duty-free10minute
rest breaks to assistant store managers who worked for
periods in excess of three and one-half hours. e alleged
relevanttimeperiodisJuly13,2008tothepresent.
Dollar Tree removed the case to federal court and
plaintihasledamotionseekingremandtostatecourt.
Initial discovery has commenced.
InFebruary2013,aformerassistantstoremanager
onbehalfofhimselfandthosesimilarlysituatedledin
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
hasjustbegunitsinvestigationoftheallegations
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
amaterialeectonitsbusinessornancialcondition.
e Company cannot give assurance, however, that one
ormoreoftheselawsuitswillnothaveamaterialeect
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,theresultsofdiscoveryandthejudgmentofinternal
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.
2012AnnualReport41