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Giant Eagle Settles Employee Lawsuits for $4.9 Million

Giant Eagle employees providing service to customers in a vibrant grocery store.

News Summary

Giant Eagle Inc. has reached settlements totaling $4.9 million to address employee grievances, including a $668,750 settlement for excessive retirement plan fees affecting over 15,000 employees and a $4.2 million settlement concerning misclassification of team leaders regarding overtime pay. The resolutions reflect the company’s commitment to addressing employee concerns while planning expansion efforts, including new store openings supported by funds from the sale of GetGo gas stations. The settlements aim to benefit current and former employees as Giant Eagle navigates legal challenges and growth initiatives.

Pennsylvania – Giant Eagle Inc., a prominent grocery chain based in Pennsylvania, has reached a settlement of $668,750 to resolve a proposed class action concerning excessive administrative fees charged in its retirement plan, which affects over 15,000 employees who have been covered by the plan since August 2018. The settlement comes after allegations that high fees detrimentally impacted retirement savings for participants.

The approved settlement follows a motion for preliminary approval filed in the U.S. District Court for the Western District of Pennsylvania. Considering the maximum potential damages could have reached approximately $3 million, the settlement is viewed as a significant development for both current and former employees seeking redress.

In an unrelated legal matter, Giant Eagle has also settled a class action lawsuit involving allegations of misclassification of team leaders and assistant store leaders as exempt from overtime pay. This settlement totals $4.2 million and resolves two consolidated lawsuits initiated by employees for alleged violations of wage laws under Ohio and Pennsylvania statutes, as well as the federal Fair Labor Standards Act.

The overtime settlement allocates approximately $2.64 million specifically for claims from eligible class members. Around 3,000 current and former team members may be entitled to receive up to $1,000 each. The eligible workers include assistant store leaders and senior team leaders employed with Giant Eagle and GetGo from July 2015 to September 2021, as well as team leaders who worked from November 2014 to September 2021.

U.S. District Judge Colville, overseeing the case, noted that the settlement reached is “fair, reasonable and adequate,” recognizing the substantial benefits afforded to the plaintiffs involved. This legal resolution is part of Giant Eagle’s broader strategy to address employee concerns and comply with wage laws.

As the grocery chain navigates these legal challenges, it is also looking toward future growth. Giant Eagle’s CEO, Bill Artman, has announced that the company is in discussions to open its first store in southwestern Pennsylvania as part of an expansion plan. This expansion is expected to be supported by funds from the anticipated $1.6 billion generated by the sale of Giant Eagle’s GetGo gas station and convenience store business.

As part of its strategic approach, Giant Eagle intends to maintain competitive pricing while further investing in existing stores not only in Pennsylvania but also across other states including Ohio, West Virginia, Indiana, and Maryland. The grocery chain’s plans reflect its aim to enhance its market presence while addressing ongoing operational and legal matters.

The settlements indicate Giant Eagle’s commitment to resolve employee grievances while also advancing its ambitions for expansion and improved operational practices. In light of these developments, employees of Giant Eagle can expect forthcoming communications regarding claims processes related to both the retirement plan and the overtime settlement.

This announcement comes amidst other legal challenges faced by different retailers, including a recent ruling from the Ohio Supreme Court that dismissed federal lawsuits against major pharmacy chains for their roles in the opioid crisis, which received considerable attention from county officials and local communities.

Overall, the resolutions regarding employee compensation and benefits signal a proactive stance by Giant Eagle amidst ongoing growth initiatives and evolving market strategies.