Dollar General Store Remodels — Traveling Merchandisers Misclassified
Dollar General Store Remodels — Traveling Merchandisers and Retail Giant Named as Joint Employer
Atlas Retail Services, Inc. and Dolgencorp of Texas, Inc. (Dollar General) | Retail Merchandisers | Texas
Buenker Law filed a federal lawsuit against Atlas Retail Services, Inc. and Dolgencorp of Texas, Inc. — the operating subsidiary of Dollar General — alleging that both companies were jointly responsible for failing to pay overtime to traveling merchandisers who performed Dollar General store remodels across Texas. The workers were classified as independent contractors and paid a weekly flat rate; however, because that rate was docked when workers missed days and supplemented when they put in extra time, it was not a true salary — destroying any potential salary-basis defense — and no overtime was paid for the frequent weeks that exceeded 40 hours.
The joint employer theory against Dollar General is central to this case. Dollar General’s on-site representatives were present at each store remodel, assigned individual tasks to crew members in writing each day, controlled the timeline and quality of the work, and could demand the removal of individual workers. Courts have found that this level of control makes a contracting retailer a joint employer under the FLSA. Dollar General also structured its contracts with Atlas based on Atlas’s below-market pricing — pricing that was only possible because Atlas was not paying overtime. The law does not permit a retailer to knowingly benefit from a contractor’s FLSA violations while escaping liability.
The lawsuit was filed as a collective action on behalf of all merchandisers employed or engaged by Atlas Retail Services. This case has been resolved.
Workers in similar situations may have legal rights under the FLSA. Because prior legal action or agency findings can establish willful conduct, affected workers may be entitled to recover three years of back wages. Time limits apply.
