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Nielsen Revises Failed Overtime Pay Settlement

SAN FRANCISCO — Nielsen Co. LLC, the company known for tabulating how many viewers watch which television programs, is attempting to settle a putative class action wage and overtime pay lawsuit involving more than 800 of its employees. The employees claim the company denied breaks and overtime wages, in violation of the Fair Labor Standards Act (FLSA) and California labor law. The parties initially reached a $1.2 million settlement. However, a California federal judge criticized one of the agreement’s provisions, as well as the language of the agreement. The parties returned to negotiations.

The Nielsen Claim

The member representative for Nielsen filed the lawsuit in May of this year. His duties, as a member representative, consisted of visiting homes participating in the Nielsen monitoring program. According to his claim, member representatives were regularly denied compensation for time spent traveling to their first and last Nielsen home during their shifts. They were also allegedly denied meal and rest periods due to the schedules they were given.

The Initial Settlement

The initial settlement, reached in May, created a fund from which class members would receive their payouts. Any money left unclaimed in the fund was to be returned to Nielsen. This is known as a reversion clause. Nielsen defended its now deleted reversion clause, claiming not all class members would opt-in or feel the violations harmed them enough to seek payouts. The judge disagreed, and returned the settlement to the parties with directions to rewrite it with greater detail, more information, and most likely without a reversion, since judges almost never approves settlements with those clauses.

According to the judge’s instructions, the initial settlement was unclear as to whether the settlement was reasonable or not, since it lacked specifics, such as how much each class member would receive. Additionally, it was not clear the settlement was fair, since it did not mention the amount the parties believed class members could receive if they went to trial. Before a court will approve a settlement, it must determine that it is fair and reasonable for all parties.

The New Settlement

In their new settlement, which is less than the original $1.2 million, close to $510,000 will go to members in the FLSA claim, or about $700 to each class member, assuming all class members opt-in. $200,000, or about $3,000 per member, will go to members in the California claim. The parties agreed that the class members as a whole have could potentially received $6.4 million had they gone to trial, although $3.2 million was more likely. That amount would also represent an increased cost for attorneys’ fees.

There are many factors to consider when deciding whether to file or join a class action, as well as when to object to a settlement offer. Call our top-rated team of overtime pay lawyers today at (855) 754-2795 to discuss your situation and options, or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. If we accept your case, you will pay no legal fees or costs unless you receive a settlement under our No Fee Promise.

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