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CVS Caremark To Pay $15M In Overtime Case At Lee's Summit And Other Call Centers

Eligible employees will receive an average payout of about $1,000 .

CVS Caremark has agreed to pay $15.25 million to settle a lawsuit alleging it denied overtime pay to customer service agents at its call centers, including one in Lee's Summit, Missouri.

U.S. District Judge Steven Bough on Friday gave preliminary approval to the settlement, which will cover about 17,000 employees.

The lawsuit, filed in 2014 in federal court in Kansas City, alleged that CVS failed to pay the agents for pre-shift work that required them to be “call ready” for their phone calls and log in to system programs.

Under the settlement, eligible employees will receive an average payout of about $1,000, although some employees will receive more, according to court documents. About $5.8 million of the settlement fund will go toward attorneys’ fees and costs.

The employees worked at call centers throughout the country. The Lee's Summit call center has about 450 employees, according to the Lee's Summit Economic Development Council. 

Caremark is a pharmacy benefit manager that provides prescription drug coverage and negotiates reimbursement prices for vendors. It was acquired by CVS in 2007.  

Dan Margolies is a senior reporter and editor at KCUR. You can reach him on Twitter @DanMargolies.

As a reporter covering breaking news and legal affairs, I want to demystify often-complex legal issues in order to expose the visible and invisible ways they affect people’s lives. I cover issues of justice and equity, and seek to ensure that significant and often under-covered developments get the attention they deserve so that KCUR listeners and readers are equipped with the knowledge they need to act as better informed citizens. Email me at dan@kcur.org.
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