CASE SUMMARY

On February 21, 2007, a Complaint was filed on behalf of former and current Staples' Sales Managers in the U.S. District Court for New Jersey.

The Complaint alleges that Staples requires its Sales Managers to work overtime without paying them as required by federal law. The complaint alleges violations of the federal Fair Labor Standards Act (FLSA), which requires employers to pay employees for all hours worked and overtime "premium" for all hours worked in excess of 40 hours each week.

Plaintiff seeks to represent, on a collective-action basis, all former and current Sales Managers employed at any time between approximately February 8, 2004 and the present. Because the case alleges violations of the federal Fair Labor Standards Act, rather than proceeding as a class action at this time, the Plaintiffs will seek approval from the court to proceed as a "collective action." That means that only Staples Sales Managers who affirmatively seek to become a part of the lawsuit as "opt in plaintiffs" may assert claims under the FLSA. "Opt-in plaintiffs" may assert claims going back three years from the time they join the suit, unless it is determined that Staples did not "willfully" break the law, in which case the claims will reach back only two years.