XSport Fitness Settles in Lawsuit Over Allegedly Unpaid Wages

XSport Fitness Inc., Big Rock, Illinois, and parent entity Capital Fitness have reached a settlement in a class-action lawsuit over the health club company's alleged failure to pay managers overtime, minimum wage and select commission bonuses, according to recently filed federal court documents. The terms of the settlement were not publicly disclosed.

XSport on Jan. 29 reached a settlement with former employee Lundon Gooden, who filed a complaint in March 2018 against XSport in U.S. District Court for the Northern District of Illinois on behalf of himself and those he claimed were similarly situated.

Gooden, an ex-manager at XSport's club in Naperville, Illinois, alleged the company failed to issue overtime pay to employees working 40-plus-hour weeks, failed to pay employees minimum legal wages ($8.25 in Illinois) and unfairly reduced employees' sales commission fees. In his complaint, Gooden said managers routinely worked 55-hour-long weeks without extra pay and had repeatedly voiced concerns to upper management.

Gooden claimed XSport was in violation of the Fair Labor Standards Act, the Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act. He sought back pay, statutory damages and attorney fees for himself and the class he claims to represent.

The parties reported a settlement during mediation to Judge Manish S. Shah on Jan. 29, according to court documents. In the case docket, a status hearing originally scheduled for Jan. 31 was moved to March 12, with a clerk note that a possible dismissal stipulation may lead the to the cancellation of the hearing altogether.

Each parties' lead attorneys did not immediately respond to Club Industry's request for comment.

XSport ranked No. 9 on Club Industry's Top 100 Health Clubs of 2018 list, reporting $195 million in 2017 revenue.