Family Dollar plans to settle with store managers on overtime

(Reuters) — Family Dollar Stores Inc. said on Wednesday that it could pay up to $14 million to settle with a class of more than 1,700 store managers regarding their claims for overtime wages.

The preliminary settlement with New York employees provides for a payment of up to $14 million. A finalized settlement would need court approval, and that process has not yet begun, the discount chain said.

Family Dollar plans to record a one-time charge in the fourth quarter to cover previously unplanned costs and expenses related to the litigation and settlement.