Facts

Evolve Mortgage Services LLC provides outsourced mortgage services and technologies. Sandra Medina was employed as a mortgage underwriter by Evolve from August 2020 until February 2021. On August 13, 2021, Medina filed suit against Evolve on behalf of herself and on behalf of all others who were employed by Evolve as non-exempt employees and former employees eligible for commission and other non-discretionary incentive pay.

PLAINTIFF'S CONTENTIONS: Plaintiff contended that Evolve failed to pay overtime wages; failed to provide meal periods; failed to pay meal period premiums; failed to provide itemized wage statements; failed to pay wages timely upon separation from employment; violated the Unfair Competition Law; and was liable for civil penalties under the Labor Code Private Attorneys General Act. Specifically, Medina contended that Evolve failed to include non-discretionary incentive pay in its calculation of employees' regular rates for determining overtime rates. Moreover, Medina contended Evolve had engaged in this conduct knowingly, intentionally, and in bad faith.

DEFENDANT'S CONTENTIONS: Defendant denied any wrongdoing or liability. Moreover, Evolve contended that the action could not proceed as a class action; and that there were discrepancies between some employees' time records and computer activity data.

Result

The parties reached an agreement wherein Evolve agreed to pay $575,000 to settle class members' and PAGA claims.