Facts

Logan Shane Crabtree worked as a door-to-door salesperson offering solar and home security systems on behalf of Vivint, Inc.; Vivint Smart Home, Inc.; Smart Home Pros, Inc.; and Arm Security, Inc. Crabtree filed suit against the companies he sold for on behalf of himself and on behalf of all those similarly situated.

PLAINTIFF'S CONTENTIONS: Crabtree contended that the defendants misclassified its salesforce as independent contractors when they were actually employees, and that the defendants engaged in direct seller misclassification; failed to pay for training time and non-sales work activity; failed to pay overtime; failed to provide meal and rest breaks; failed to reimburse business expenses; failed to pay all commissions due; failed to pay wages; failed to provide accurate, itemized wage statements; and failed to timely pay wages due. Moreover, Crabtree contended that the defendants included unlawful contract provisions; failed to provide written notice of how commissions were calculated; failed to maintain accurate employment records; engaged in misleading advertising; and failed to maintain documents signed by sales representatives. Crabtree also contended that the defendants were liable for civil penalties under the Private Attorneys General Act of 2004.

DEFENDANTS' CONTENTIONS: The defendants denied any wrongdoing or liability and all the plaintiff's material allegations.

Result

The parties reached an agreement wherein the companies admitted no wrongdoing or liability but agreed to pay $6.5 million to settle class and PAGA claims.