Lawsuit charges Home Depot not paying overtime

[Tandalayo_Scheisskopf]

Tuesday, August 22, 206
By Tom Quigley
The Express-Times

BELVIDERE | A Warren County man filed suit Friday against The Home Depot, alleging he and others who worked in the chain's New Jersey stores are illegally being denied overtime pay.

The class-action suit filed in state Superior Court on behalf of Washington resident Edward Novak and other Home Depot employees asserts the corporation misclassifies workers as "exempt" employees "to save millions of dollars in employee compensation by requiring plaintiff and members of the class to work in excess of 40 hours per work week without paying time-and-a-half for all hours worked in excess of 40 hours," it is claimed in the lawsuit.

http://www.nj.com/news/expresstimes/nj/index.ssf?/base/news-3/1156219690236900.xml&coll=2

[Omaha Steve]

1. Home Depot CEO Rewarded as Stock Price Sinks

See a pattern? CEO millions. Workers no OT!

http://blog.aflcio.org/2006/08/07/home-depot-ceo-rewarded-as-stock-price-sinks/

In today’s world of “do-it-yourself” repairs, HGTV and Extreme Home Makeovers, millions of us are painting rooms, building shelves and redecorating family rooms. And we are buying millions of dollars worth of supplies from the big-box dealers like Home Depot.

But it seems that Home Depot’s megagrowth machine that took off in the 1990s is slowing down. Today’s Wall Street Journal (subscription required) reports that Home Depot’s stock price has dropped 20 percent since 2000, even though the company reported $81.5 billion in retail sales last year, the third-highest amount by any company in the world. Home Depot’s chief competitor, Lowe’s, has seen its stock rise 173 percent.

What’s going on—sales strong, stocks down? According to The Journal, the troubles began just before Robert Nardelli took over as CEO in late 2000. Under his watch, the situation only has gotten worse. Overall sales growth has slowed from an annual 19 percent to about 12 percent.

For his success at slowing sales and lowering stock prices, Nardelli has pocketed nearly $245 million over the past five years—$37.9 million in salary and stock options last year alone. As we point out at the AFL-CIO Executive Pay Watch site, Nardelli’s employment agreement guarantees him a defined-benefit pension equal to 50 percent of his salary and bonus at age 62. The retirement package is worth an estimated $4.6 million. Even if Nardelli’s performance does not entitle him to a bonus, his pension benefit will be calculated as if he had earned a $4.5 million bonus.

Home Depot is less generous when it comes to retirement benefits for its other employees. Like many retailers, Home Depot does not offer a defined-benefit pension plan. Instead, workers are offered a “FutureBuilder” 401(k) plan as well as an Employee Stock Purchase Plan. These plans do not provide a guaranteed annual pension benefit.

At the Home Depot 9 stockholders meeting May 25 in Wilmington, Del., Nardelli stifled debate, according to The New York Times, about his $245 million in salary and benefits. The Associated Press reported the company’s directors, who approve Nardelli’s compensation, didn’t even show up for the meeting. And Nardelli, who refused to allow any general questions from stockholders, shut down the meeting after only 30 minutes, AP said.

You can bet, though, that if a local Home Depot store manager saw his sales growth drop by 7 percent and refused to listen to customers’ complaints, he or she would not get a guaranteed golden parachute. More likely, it would be a guaranteed boot out the door.

by James Parks

[wakeme2008]

3. At one time it was a great company to work at.

I remember talking to some employees and they loved it and were well paid.... I guess Walmart management got to it. :grr:

[noonwitch]

4. That's too bad, I always shopped there because of their helpful staff

I always liked the people who work at Home Depot stores. They are very helpful to single female home owners like myself who are not mechanically inclined. They can explain how to fix things to doofus' like me that are not mechanically inclined.

[fasttense]

2. I thought the bushes outlawed overtime? n/t

[MissMillie]

5. Not only does this "exempt" status mean no overtime

but it probably also means no benefits.