Hannaford Supermarkets has agreed to pay nearly $9 million to settle a class action lawsuit that sought back pay for unpaid overtime worked by middle managers in stores across the Northeast.
The federal lawsuit was filed in 2024 by Tasha Vye, a former bakery manager at the Hannaford in Lewiston. Vye claimed the company violated pay regulations of the federal Fair Labor Standards Act and requested class certification to include all Hannaford employees in similar positions.
The settlement, approved Aug. 27 in U.S. District Court in Portland, benefits more than 1,400 people who worked in Maine, Massachusetts and New York, according to court documents. Hannaford employs about 9,500 people in Maine and nearly 30,000 across the region.
Class members will receive varying amounts from the settlement based on the number of weeks worked, according to the agreement approved by Chief U.S. District Judge Lance Walker. Those who formally opted into the case — about 456 people — will receive more.
Vye was awarded an additional $10,000 for her efforts in bringing the case to court, while three other named plaintiffs received $5,000 each, the settlement states.
The settlement applies to unpaid overtime at Hannaford stores in Maine and New York from 2018 to 2024, and in Massachusetts from 2023 to 2024.
Immediately following Vye’s lawsuit in October 2024, Hannaford announced that it would start paying hundreds of midlevel managers for overtime hours that previously went unpaid.
At the time, the company said the move was meant to boost employee satisfaction, retention and recruitment amid a labor shortage that has many people working overtime.
Hannaford notified department managers, evening operations managers and associate relations managers that they would be reclassified from overtime-exempt salaried personnel to nonexempt salaried personnel.
Impacted managers would be paid for every hour they worked, plus time-and-a-half for all hours exceeding the 40-hour mark each week, the company said. Their responsibilities wouldn’t change and they would remain eligible for all salaried benefits, including annual performance bonuses.
Following the settlement, Hannaford said it believes its classification of all department manager roles has always been compliant with all state and federal laws.
“We value the leadership that our department managers provide to our organization on a daily basis,” Hannaford spokesperson Ericka Dodge Katz said Friday via email. “We are proud of Hannaford’s ongoing commitment to offering competitive pay and benefits and a positive work environment for all of our associates.”
The settlement includes $3 million for lawyers fees and expenses. The plaintiffs were represented by Head Law Firm in Chicago, Klafter Lesser in Rye Brook, New York, and Murray Plumb & Murray in Portland.
“We appreciate the efforts of Hannaford and its counsel to bring this case to a resolution,” C. Andrew Head said Friday.
This story was originally published by the Maine Trust for Local News. Kelley Bouchard can be reached at kbouchard@pressherald.com.