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The New York Times reports that Gristedes has been found guilty in a federal court of breaking the law by not paying overtime to lower-level managers in its stores.

According to the Times story, “As a result of the decision by Judge Paul A. Crotty of Federal District Court in Manhattan on Thursday, lawyers for more than 400 current and former Gristedes managers predicted that the company would be forced to pay the plaintiffs $25 million.

“Granting the workers summary judgment, Judge Crotty ruled that the supermarkets’ department heads and so-called co-managers were hourly employees who were entitled to overtime pay. He rejected Gristedes' arguments that they were salaried executive workers who, under federal and state law, are generally exempt from receiving time and-a-half pay for overtime.”

Gristedes reportedly plans to appeal.

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