Starbucks in settlement on overtime pay

Seattle -- Starbucks Corp. agreed to pay nearly $1.6 million to cafe managers and their lawyers to settle a dispute concerning overtime pay, the Associated Press reported.

The lawsuit was filed in 2009 in U.S. District Court in South Florida by a former Starbucks employee and covered roughly 550 managers.

The store managers, who often work side-by-side with other cafe employees, had argued that Starbucks wrongly classified them as exempt from overtime pay. In their complaint, they said they should be compensated with overtime pay when they work more than 40 hours per week.

In a settlement reached this month, Starbucks agreed to pay $613,680 to the managers represented in the case and $950,000 in attorney's fees and expenses.

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