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Einstein Noah agrees to settle wage-and-hour suits

LAKEWOOD Colo. Einstein Noah Restaurant Group Inc. has agreed to pay up to $2.5 million to settle two wage-and-hour lawsuits by former employees of its bagel chains.

In a filing Wednesday with securities regulators, Einstein Noah said the deals still required signed agreements by all parties, court approval and "the participation of a sufficient percentage"of the groups covered in the intended class actions.

The tentative settlements stem from three San Diego complaints, including two filed in 2007 by a pair of former store managers whose cases subsequently were combined, and one suit filed this year by two non-exempt employees. The managers claimed they had been misclassified as exempt from overtime and denied meal and rest breaks. The hourly workers alleged they had not been paid the minimum wage and were denied breaks and overtime.

Both settlements were reached Aug. 27, said Einstein Noah, whose Einstein Bros., Noah's and Manhattan Bagel brands have 623 corporate or franchised outlets in 35 states. The company plans to record a $1.9 million liability in its fiscal third quarter to cover the pending settlements.

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