On January 2, 2002, two plaintiffs filed a Complaint on behalf of former and current Sears product repair service technicians in the U.S. District Court for the District of New Jersey.  Among other things, Sears provides product repair services throughout the United States. Product repair service technicians perform repair services for air conditioners, furnaces, dishwashers, washer and dryers, refrigerators and freezers, tractors and riding mowers, stoves, ranges and ovens, garage door openers, large screen TVs and home entertainment systems. Products may also be serviced at various Sears sites around the nation.

            The Complaint alleges that Sears requires its hourly, product repair service technicians to work without paying them as required by federal and New Jersey state law. The complaint alleges violations of the federal Fair Labor Standards Act (FLSA), which requires employers to pay employees for all hours worked.  It also alleges violations of New Jersey State Wage and Hour Law.  Plaintiffs claim that Sears has engaged in the practice of requiring or permitting its hourly non-exempt product repair service technicians to perform work for the benefit of Sears, and which is required or permitted by Sears, but for which Sears does not record, credit or compensate its non-exempt hourly employees.

            Plaintiffs seek to represent, on a collective-action basis, all former and current product repair service technicians employed by Sears at any time between approximately November 15, 2001 and the present.  Because the case alleges violations of the federal Fair Labor Standards Act, rather than proceeding as a class action, the Plaintiffs will seek approval from the court to proceed as a “collective action.”  That means that only Sears product repair service technicians 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 Sears did not “willfully” break the law, in which case the claims will reach back only two years.