AT&T’s $2.75 Million Settlement for Overtime Wages Owed

by Norman B. Blumenthal on November 21, 2017

blumenthal nordrehaug & bhowmik, southern california employment law, southern california employment law attorneys, overtime wages, overtime lawsuit, overtime suit, california overtime lawsuit, california overtime suitTentative approval was granted for a $2.75 million nationwide settlement for approximately 400 AT&T employees that functioned in the capacity of teachers/trainers for the major phone and wireless company’s field workers. Workers alleged they were denied overtime compensation due to the fact that AT&T classified them as “managers.”

The federal judge who granted tentative approval was U.S. District Judge Vince Chhabria. The settlement was negotiated by AT&T and the workers’ representatives along with the assistance of a mediator. The settlement as agreed on by the parties would offer compensation reaching as far back as 2011 for unpaid overtime and meal and rest breaks that were not provided (as legally mandated) to AT&T employees.

AT&T Human Resources department employees filed suit in 2015. The employees who originally filed were those that designed the training courses and taught classes to technicians and field workers for the company. While the workers were paid their pre-determined salaries, the company was actually in violation of both federal and state employment law as employees working over 40 hours in one week are required to receive overtime pay at a rate of time and a half. California labor law also requires that employers provide their employees with 30-minute meal breaks every 5 hours and 10 minute rest breaks every 4 hours. Workers allege that the company also violated this regulation.

While the parties involved agreed and see the settlement as fair, adequate and reasonable, it does not change the current status of employees of AT&T. AT&T employees can still be classified as managers (and as such be exempt from overtime pay), which seems to leave the company open to future lawsuits.

If you have questions about overtime, or overtime requirements, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

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