XSport Fitness Inc., Big Rock, Illinois, is facing a class-action lawsuit for allegedly violating multiple labor laws by failing to pay its managers overtime and select commission wages.
Plaintiff Lundon Gooden, a former manager at XSport's health club in Naperville, Illinois, made three primary allegations against the company in his March 27 complaint filed in Illinois federal court. First, he claimed XSport "routinely failed" to pay its employees overtime when their work weeks exceeded 40 hours. Second, he claimed the company failed to pay its employees the minimum legal wage of $8.25 per hour. He also claimed XSport "improperly reduced" sales commission fees paid to employees, such as those for club membership transactions.
Gooden is basing his claims on the Fair Labor Standards Act, the Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act. He is seeking back pay, statutory damages and attorney fees for himself and the class he claims to represent.
The complaint alleges XSport pays its managers an annual salary of $23,600 while requiring them to work a minimum of 55 hours per week, all without overtime pay. Gooden claims he and other managers typically worked more than 55 hours per week. Gooden, who began working at XSport in April 2017, claims he emailed company executives multiple times between October 2017 and March 2018 to express concerns about being underpaid.
The complaint states: "Defendant is aware that Plaintiff and other similarly situated individuals work more than forty hours in a work week. ... Defendant was aware that members of the Commission Class are owed additional compensation. .... As a direct and proximate result of Defendant’s unlawful conduct, the members of the Overtime and Minimum Wage Class have suffered and will continue to suffer lost wages and other damages."
XSport did not immediately respond to Club Industry's request for comment.
XSport ranked No. 9 on Club Industry's Top 100 Health Clubs of 2017 list, reporting $193 million in revenue across its 38 locations.