Hannaford to pay $9M settlement over manager overtime pay

Hannaford Supermarkets has agreed to a nearly $9 million settlement to resolve a class action lawsuit regarding unpaid overtime for middle managers in the Northeast. The federal lawsuit was initiated in 2024 by Tasha Vye, a former bakery manager in Lewiston, who alleged the company violated the Fair Labor Standards Act.

The settlement, approved by Chief U.S. District Judge Lance Walker, covers more than 1,400 employees across Maine, Massachusetts, and New York. Payout amounts will vary based on the number of weeks worked, with approximately 456 individuals who formally opted into the case receiving higher amounts. Vye was awarded $10,000 for her role in the litigation, while three other named plaintiffs received $5,000 each.

The agreement addresses unpaid overtime for Hannaford stores in Maine and New York from 2018 to 2024, and in Massachusetts from 2023 to 2024. Following the initial lawsuit in October 2024, Hannaford began reclassifying hundreds of midlevel managers from overtime-exempt to nonexempt status to ensure they receive overtime pay for hours exceeding 40 per week.