Confidential
Settlement – $8,000,000Judge
Court
L.A. Superior Central
Attorneys
Plaintiff
Kevin T. Barnes
(Law Offices of Kevin T. Barnes)
Dennis F. Moss
(Moss Bollinger LLP)
Defendant
Timothy J. Long
(Greenberg Traurig LLP)
Facts
The plaintiffs in this case - class members consisting of sales representatives - were employed by the defendants.
The plaintiffs claimed that they were improperly classified as exempt employees and were therefore not entitled
to overtime pay as a result of their status as so-called sales representatives.
The plaintiffs alleged that although they were given the title of sales representatives, they were really bottle
delivery drivers and they spent very little of their time actually engaging in outside sales duties. Accordingly,
the plaintiffs claimed that they were truly non-exempt employees.
The plaintiffs alleged that the work they performed was not outside sales positions which
fell within the exception of the California Labor Code, Section 1194 and/or California Industrial
Welfare Commission Orders, applicable to the defendantsÆ businesses. The class members in
these positions were thus not compensated for hours in excess of eight hours per day or 40
hours per week.
Settlement Discussions
A 12-hour mediation was held on Nov. 17, 2000 before David A. Rotman of Gregoria, Haldeman & Piazza, resulting in a settlement in the amount of $8 million.
Damages
The plaintiffs alleged a failure to collect overtime compensation. The class members claimed a loss of earnings as a result of the defendantsÆ refusal to pay overtime wages to class members. Each class member was claiming a premium, which is overtime payment for all hours in excess of eight hours per day and in excess of 40 hours per week, prejudgment interest, waiting time penalties and other statutory damages.
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