Judge Rules Steak ‘n Shake Owes $7.7 Million in Unpaid Overtime in Class-Action Suit

A federal judge in Missouri has ruled in favor of 286 store managers in the St. Louis market, ordering Steak ‘n Shake to pay the group $7.7 million in unpaid overtime wages.

The payout in the class-action suit was awarded after a jury agreed Steak ‘n Shake was liable for federal wage and hour violations back in February. According to a recent Restaurant Business article, the managers accused the franchisor of improperly classifying them as exempt, then requiring them to work 50 hours or more per week and in fundamentally non-managerial roles when restaurants were understaffed.

The article also notes that Steak ‘n Shake is facing another class-action suit of this nature covering a class of 1,000 managers beyond the St. Louis area.

Read the full article here.