SAN FRANCISCO, CA — A federal judge recently gave his initial approval of a multimillion dollar settlement to resolve a class action unpaid overtime lawsuit between AT&T and hundreds of current and former workers over allegations that the company failed to properly compensate employees for all their time on the job. The $2.75 million settlement, if approved, would compensate an estimated 400 workers who claim they were improperly classified as “managers” under federal wage and labor laws and denied overtime wages.
According to the class action unpaid overtime lawsuit, originally filed 2015 in U.S. District Court for the Northern District of California’s San Francisco Division, AT&T failed to properly pay employees designing and teaching in the company’s human resources department. The defendant allegedly classified these workers as managers and only paid them a flat weekly salary, even though they frequently worked more than 40 hours per week.
While the proposed settlement would resolve claims with potentially hundreds of current and former workers, AT&T has not made any changes to worker classification within the departments involved in the lawsuit. By choosing to resolve the claim and not reform its business practices, AT&T may leave itself open for even more similar lawsuits by other workers outside the scope of this proposed resolution.
Additionally, the plaintiffs brought claims under California labor and wage laws alleging that AT&T failed to provide uninterrupted 30-minute meal and rest breaks immediately following the employee’s fifth hour on the job. Under state law, employers must compensate workers with an additional hour of regular hourly pay in lieu of their lunch break. Furthermore, workers must be given a 10-minute rest break every four hours or be further compensated.
The multimillion dollar settlement compensates the plaintiffs for all their back pay with interest and damages. Not included in that number is an additional $1.2 million in attorneys fees to cover the cost of litigating the matter to recover all the unpaid wages and damages for the plaintiffs
Manager Unpaid Overtime Lawsuits
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