Hannaford reaches $9M settlement over manager pay

Hannaford Supermarkets to Pay Nearly $9 Million to Resolve Overtime Claims

Portland, Maine – A federal court approved a settlement on Aug. 27 that will see more than 1,400 employees of Hannaford Supermarkets across the Northeast receive back‑pay for overtime that was not previously compensated.

The class‑action lawsuit began in 2024 when Tasha Vye, a former bakery manager at the Lewiston Hannaford, alleged that the chain had violated the federal Fair Labor Standards Act by classifying her and other mid‑level managers as exempt from overtime. Vye asked the court to certify the case as a class action so that all employees in similar positions could join.

Settlement details

• Total payout: roughly $9 million, including $3 million earmarked for attorneys’ fees and expenses.
• Class size: over 1,400 employees from Hannaford stores in Maine, Massachusetts, New York, New Hampshire, and Vermont.
• Opt‑in group: about 456 employees who formally elected to join the class will receive larger payments, calculated according to the number of weeks worked.
• Named plaintiffs: Vye will receive an additional $10,000 for her role in bringing the case, while three other named plaintiffs will each receive $5,000.

The agreement covers unpaid overtime from 2018 through 2024 in Maine and New York, and from 2023 through 2024 in Massachusetts. The settlement requires the company to pay back wages for hours worked beyond the standard 40‑hour week, at a rate of time and a half for those extra hours.

Background

In October 2024, shortly after Vye’s lawsuit was filed, Hannaford announced it would begin paying overtime to its department managers, evening operations managers, and associate relations managers—positions that had previously been deemed exempt. The company said the change would help boost employee satisfaction, retention, and recruitment amid a labor shortage that had many workers clocking overtime hours.

“We value the leadership that our department managers provide to our organization on a daily basis,” Hannaford spokesperson Ericka Dodge Katz said via email. “We are proud of Hannaford’s ongoing commitment to offering competitive pay and benefits and a positive work environment for all of our associates.”

Legal representation

The plaintiffs were represented by several law firms: Head Law Firm in Chicago, Klafter Lesser in Rye Brook, New York, and Murray Plumb & Murray in Portland. C. Andrew Head, of Head Law Firm, said, “We appreciate the efforts of Hannaford and its counsel to bring this case to a resolution.”

Company perspective

After the settlement, Hannaford reiterated that it believed its classification of all department manager roles had always complied with state and federal laws. The company’s spokesperson also noted that the managers’ job responsibilities would not change and that they would remain eligible for all salaried benefits, including annual performance bonuses.

Company scale

Hannaford employs about 9,500 people in Maine and nearly 30,000 across the region, making this one of the largest employment‑law settlements in the state’s recent history. The payment will be distributed over time, with amounts varying by the number of weeks worked by each employee.

The settlement, approved by Chief U.S. District Judge Lance Walker, marks the end of a legal battle that highlighted the importance of accurate overtime classification for mid‑level managers in the retail sector.