U.S. Judge Rejects Overtime Lawsuit by UPS Supervisors

United Parcel Service Inc. had a class-action lawsuit brought by supervisors in California dismissed because as managers they don’t qualify for overtime pay.

U.S. District Judge Dean Pregerson in Los Angeles granted UPS’ motion for summary judgment. The company had submitted substantial evidence that the supervisors “spend the majority of their time performing exempt managerial tasks,” the judge said in a ruling filed this week in federal court.

The lawsuit, representing a class of about 1,200 current and former supervisors, accused Atlanta-based UPS of violating California labor law by not providing overtime pay and meal breaks. UPS showed that the supervisors fell under an exemption the law makes for executive and administrative employees because, among other things, they are required to use independent judgment in “matters of consequence,” the ruling said.

John Furutani, an attorney for the plaintiffs with law firm Furutani & Peters in Pasadena, didn’t return a call for comment.

The ruling is “very significant,” UPS spokeswoman Peggy Gardner said. “It underscores our position that our supervisors are an essential part of the management team.”

UPS shares dropped 16 cents to $71.95.