Facts

The California State Automobile Association Inter-Insurance Bureau (CSAA) hired Alexander Jacobs as an insurance sales representative beginning Oct. 15, 2005. In connection with a prior class action lawsuit, CSAA reclassified its sales representatives, including Jacobs, as non-exempt employees beginning Jan. 1, 2006. The class period for the previous lawsuit ended Sept. 15, 2005. As a result, employees who began working after Sept. 15, 2005, did not receive settlement proceeds, and employees who worked before reclassification on Jan. 1, 2006 did not receive overtime wages. Jacobs fell within this class of individuals and filed a proposed class action against CSAA for violations of California Labor Code Sections 203 and 226.

PLAINTIFF'S CONTENTIONS:
The plaintiff alleged that CSAA failed to pay overtime wages and provide accurate pay stubs for sales representatives who began working between Sept. 15, 2005 to Jan. 1, 2006.

DEFENDANT'S CONTENTIONS:
The defense denied the allegations.

Result

The parties settled for $850,000.