A wage & hour class action lawsuit brought against Staples Inc. on behalf of approximately 1,700 current and former assistant store managers in California has been settled for $38 million. The settlement is still subject to court approval. A trial had been scheduled to start earlier this month. The suit alleged that the stores misclassified assistant managers as exempt under overtime pay regulations. According to a 2003 SEC filing, the lawsuit alleged damages of up to $150 million. The company denied the claims and admitted no wrongdoing in the settlement. A spokesperson for the office products firm said that "Staples believes that its store labor model, which is based on a commitment to fair and respectful treatment of its associates, is fully compliant with applicable California law.''