24 Hour Fitness Settles Overtime Case for $17M

SAN FRANCISCO (CN) - A federal judge has approved a $17.4 million settlement over claims that 24 Hour Fitness refused to pay overtime.

Gabe Beauperthuy led a 2006 class action accusing the gym chain of illegally classifying its managers, sales counselors and trainers as exempt from overtime pay in violation of the Fair Labor Standards Act.

U.S. District Judge Samuel Conti approved a final settlement last week that awards each of the 862 claimants $20,000 and attorneys' fees of more than $5 million, plus fees and costs, for a total of more than $17.4 million.

Conti called the settlement "fair, reasonable and adequate," and said it received "overwhelming approval" from 851 of the 862 claimants.

"The reaction of the plaintiffs to the proposed settlement strongly supports the conclusion that the proposed settlement is fair, reasonable and adequate," Conti wrote. "Accordingly, the court hereby grants final approval of the settlement and orders the parties to comply with the terms of the settlement agreement."

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