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$4.6 Million Settlement.
900 Managers Misclassified.

Covelli Enterprises, the largest Panera Bread franchisee with 300 locations, hit with class action after assistant managers were wrongly classified as exempt and had collectible overtime pay.

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$4.6M
Settlement
300
Locations
900+
Managers Affected
FLSA
Category

How It Happened

2016 • POLICY CHANGE

Panera Reclassifies Assistant Managers

Panera Bread reclassified assistant managers as salaried exempt employees. Under FLSA, exempt employees must primarily perform managerial duties, not hourly tasks like cashier work and food prep.

ONGOING • ALL LOCATIONS

Managers Perform Non-Managerial Work

Assistant managers spent significant time on hourly tasks: running the cash register, preparing food, cleaning. Despite working 50+ hour weeks, they received no overtime pay because of their "exempt" classification.

JANUARY 2018

Class Action Lawsuit Filed

Former assistant managers filed suit in Ohio federal court, alleging Covelli Enterprises had FLSA and Ohio wage law gaps by misclassifying them, leaving overtime compensation uncollected.

2019

$4.6 Million Settlement Reached

Covelli Enterprises agreed to pay $4.6 million to settle the claims. The settlement covered 900+ assistant managers across their 300-location portfolio.

2020

Final Approval Granted

Federal court granted final approval of the settlement. Covelli also faced a separate D.C. class action on similar misclassification issues, settling for approximately $2M.

Without Marty

  • No visibility into actual duties performed by "exempt" managers
  • Misclassification spreads across 300 locations undetected
  • Years of collectible overtime accumulate as liability
  • First notice comes from class action attorneys
  • $4.6M+ settlement hits the books

With Marty

  • Time analysis shows managers doing hourly work
  • Notifications when exempt employees exceed 40 hours on non-exempt tasks
  • Classification audit flags misaligned positions
  • Fix classification before liability compounds
  • Documentation proves good-faith compliance efforts

See What's Collectible in Your Classification Data

Our analysis finds the collectible cash sitting in your classification and overtime data.

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If we don't find $250K+ in collectible cash, you don't pay.

Sources: Restaurant Dive, court filings, DOL records.

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