Facts

John Conley and Coy Wiggins, senior new business representatives, Jeffrey Brewer, an electric distribution engineer, and Hall Hackney, a gas distribution engineer, were employed by Pacific Gas & Electric Co. (PG&E). The plaintiffs brought suit on behalf of a class of approximately 700 individuals similarly situated who had worked for PG&E between March 1996 and May 2009. Plaintiffs alleged that PG&E violated the California Labor Code and the Business & Professions Code. All class members were either senior new business representatives, industrial power engineers, electric distribution engineers, or gas distribution engineers.

The case was stayed in 2001 and 2002 while PG&E was in bankruptcy proceedings. In 2004, the court denied class certification and granted summary judgment in favor of PG&E. The plaintiffs appealed and, on remand, three subclasses were certified.

PLAINTIFF'S CONTENTIONS:
The plaintiffs claimed that they were improperly classified under the California Labor Code as employees exempt from overtime wages. They claimed they were in fact entitled to be paid at rates 1.5 times their regular rate for hours worked beyond 40 hours per week.

DEFENDANT'S CONTENTIONS:
PG&E claimed that the employees were properly classified as exempt and that no overtime violations had occurred under state law.

Damages

On behalf of the class, the plaintiffs sought damages for back wages for unpaid overtime hours, overtime pay going forward, waiting time penalties, interest and attorneys' fees.

Result

Through mediation, the parties settled for $17,250,000. Pursuant to the settlement, PG&E will reclassify the senior new business representatives as hourly and start paying them overtime. PG&E also agreed not to reduce their base pay.