Moody v. Circle K Stores Inc.

In Moody v. Circle K Stores Inc., filed on November 5, 2018, in the U.S. District Court for the District of Arizona, a group of Circle K store managers alleged that the company misclassified them as exempt from overtime pay under the Fair Labor Standards Act. The plaintiffs, led by Tammy Moody, argued that they spent the majority of their time performing non-managerial tasks such as operating cash registers, stocking shelves, and cleaning, rather than exercising the discretion required for exempt executive or administrative employees. The court conditionally certified a nationwide collective action in 2020, finding the managers were similarly situated regarding job duties and the company's uniform classification policy. In 2021, the parties reached a settlement agreement, with Circle K agreeing to pay $2.95 million to resolve the claims, while denying any wrongdoing.

The court conditionally certified a collective action in 2020. The case ultimately settled in 2021 for $2.95 million, with Circle K denying liability.

Whether Circle K store managers qualified for the executive or administrative exemptions under the FLSA, thereby relieving the company of the obligation to pay overtime wages.

The case highlighted widespread misclassification of retail managers and prompted increased scrutiny of exemption practices in the convenience store industry, influencing similar lawsuits and settlements nationwide.