LOS ANGELES — Nearly 450 current and former Metlife employees could potentially share in a $2 million overtime lawsuit settlement. The overtime lawsuit claims Metlife violated the Fair Labor Standards Act (FLSA) and California state labor law in denying financial service representatives overtime pay; requiring the representatives pay business costs; and taking portions of the representatives’ earned commissions. Even though there is already a proposed settlement offer, the lawsuit has not yet been certified as a class action.
The potential class would include all California Metlife financial service representatives employed from January 2009 to March 2014. According to the claim, these employees were encouraged to work overtime without pay. The company also allegedly took portions of the representative’s commissions if the employee quit working for the company before they reached the three-year mark. On top of the alleged lack of overtime and confiscation of commissions, financial service representatives were allegedly charged fees for use of office space, clerical support, and were not compensated for licensing fees. Each of these fees could be considered illegal withholdings.
In response the representatives’ allegations, Metlife claims the employees received an expense allowance that covered the office and licensing fees. The company denies all of the other claims. However, Metlife agreed to settle the lawsuit.
Settling overtime claims is usually in the best interests of both parties when it comes to time and costs. All settlements must receive court approval. The court will look to see if the settlement is fair and reasonable for the plaintiffs and the defendants. In this case, the proposed $2 million settlement is considered fair and reasonable by both parties, even though it is nearly half of the total amount claimed in the lawsuit. Both sides determined a settlement was unlikely if the full amount of the claim was sought because of the available evidence.
While there is evidence to support the representatives’ claims, there is also evidence supporting Metlife’s claims. Additionally, the Department of Labor issued an opinion letter, which is not a ruling but an indication of how the Department would rule, in 2006, holding financial service representatives as exempt from overtime under the FLSA administrative exemption. If this lawsuit went to trial, it would likely be expensive for both sides and it is unclear at the moment which side would win.
Overtime wage claims do not always become class actions, nor do they always go to trial. If you believe your employer has failed to pay proper overtime pay, contact our knowledgeable team of overtime pay lawyers today at (855) 754-2795 to discuss your situation and options. Or complete the Free Unpaid Overtime Case Review form on the top right of this page and our top rated legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.