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GameStop Faces Class Action Lawsuit For Alleged Breach Of Labor Law - Read Why

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  • Former GameStop Corp (NYSE: GME) employee Trevon Mack prosecuted the video game retail company in a proposed class-action lawsuit for allegedly violating New York Labor Law, the Polygon reports.

  • Mack and his lawyer asserted that GameStop workers qualify as “manual laborers,” suggesting that 25% of their jobs require manual labor, like organizing stockrooms, moving packages, and standing for a long shift.

  • GameStop allegedly pays their workers every other week, violating the New York Labor Law Section 191, which requires companies to pay workers classified as manual laborers every week.

  • The proposed class-action suit could include “hundreds, if not thousands” of employees and former GameStop workers.

  • Mack and his lawyer want the court to define GameStop workers as manual laborers compelling GameStop to pay.

  • The state defines a manual worker as “a mechanic, workingman, or laborer,” interpreting it as a worker doing “physical labor” for more than 25% of their working day. In contrast, New York’s Department of Labor includes “countless physical tasks performed by employees” as physical labor.

  • Price Action: GME shares traded higher by 7.49% at $98.33 on the last check Thursday.

  • Photo via wikimedia Commons

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