A California employee misclassification lawsuit appears to be drawing toward a resolution, after plaintiffs – a group of corporate training managers – have asked a federal judge to approve a $2.75 million settlement alleging their employer violated the Fair Labor Standards Act.
Specifically, plaintiffs in Dito, et al v. AT&T Services, Inc. et al alleged in the California Northern District Court that telecommunication giant AT&T wrongly classified them as independent contractors in violation of the FLSA, when in fact they were employees. The goal of the misclassification, plaintiffs allege, was to sidestep legal requirements to pay workers overtime.
The proposal for settlement involves a somewhat unusual structure in that it includes both a common fund for existing class members within the state, as well as an opt-in for those out-of-state who may be class members, but have yet to assert their own claims under FLSA. The settlement would save class members the the risks of individual employment litigation. Even this class action employment lawsuit, were it to continue, could drag on several more years, plaintiff attorneys opine. Continue reading