Daily Labor Report ®

Jimmy John’s Managers Seek Approval of $1.83 Million OT Deal

Feb. 17, 2021, 3:56 PM

Jimmy John’s LLC and several franchisees agreed to pay $1.83 million to resolve a Fair Labor Standards Act collective of nearly 600 assistant managers nationwide who alleged they were cheated out of overtime pay, according to a motion for settlement approval filed in a federal court in Illinois.

Under the proposed deal, approximately 66 managers, who were employed at Jimmy John’s corporate-owned restaurants and opted into the FLSA collective, will each get individual payments from a $272,500 fund.

But more than 500 managers who worked for independent Jimmy John’s franchisees will each receive three gift cards totaling $300. The gift cards, which can be used at any Jimmy Johns location, are transferable and managers have the option to resell them for cash.

Counsel is seeking up to $1.1 million in attorneys’ fees and $250,000 in litigation costs, plus $2,500 service awards for each of the named plaintiffs, according to the motion submitted Feb. 15 to Judge Charles P. Kocoras of the U.S. District Court for the Northern District of Illinois.

If approved, the deal would resolve three consolidated collective actions brought by managers for FLSA violations. The suits primarily alleged that Jimmy John’s corporate and franchisees misclassified these managers as exempt from the FLSA’s overtime rules, thereby depriving them of time-and-a-half pay when they worked more than 40 hours per week.

Seyfarth Shaw LLP represents Jimmy John’s. Klafter Olsen & Lesser LLP, Foote, Mielke, Chavez & O’Neil LLC, Outten & Golden LLP, Shavitz Law Group PA, Myron M. Cherry & Associates LLC, Werman Salas PC, and Landskroner Grieco Merriman LLC represent the managers.

The case is In Re Jimmy John’s Overtime Litig., N.D. Ill., No. 1:14-cv-05509, 2/15/21.

To contact the reporter on this story: Kathleen Dailey at kdailey@bloomberglaw.com

To contact the editors responsible for this story: Rob Tricchinelli at rtricchinelli@bloomberglaw.com; Patrick L. Gregory at pgregory@bloomberglaw.com

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