Borders Settling Overtime Suit

Borders announced on Thursday that it has reached a tentative settlement of an overtime lawsuit, which would result in a non-operating, after-tax charge of $2.2 million, or $0.03 per share. According to an SEC filing from December 10, 2003, the suit involves assistant managers in Borders superstores in California between April 10, 1996, and March 18, 2001. The employees allege that they “worked hours for which they were entitled to receive, but did not receive, overtime compensation under California law, and that they were classified as exempt store management employees but were forced to work more than 50 percent of their time in non-exempt tasks.”