SANTA ANA — In April, MetLife reached a settlement with its financial service representatives in an overtime pay class action lawsuit. Recently, a California federal judge rejected the proposed settlement offer, finding it did not equitably distribute the funds among the class members. The settlement, worth nearly $2 million, was meant to redress a claim that the company failed to pay overtime, withheld commissions, and forced representatives to pay business costs in violation of the Fair Labor Standards Act (FLSA) and California labor laws.
The Class Members
There are 431 current and former MetLife employees set to receive payouts once the settlement is approved. The class includes MetLife financial service representatives who worked for the company in California from January 2009 to March 2014. One sub-class claims the company withheld commissions if they left the company before working 12 quarters. The second sub-class worked for the company for more than ten quarters, and were allegedly charged for office space, clerical support, and other business fees. Both groups claim the company encouraged them to work overtime without pay, and did not reimburse them for expenses such as mileage and licensing costs.
The Rejected Settlement
The settlement would have created two sub-funds from which members in each sub-class would receive their pay outs. The first fund was meant for representatives who had their commissions confiscated for leaving the company before 12 quarters. The court approved that fund.
The second fund would have compensated representatives who paid business expenses, were denied overtime pay, and were not reimbursed for additional expenses. According to the court, this second fund was inequitable, since representatives who worked fewer than 10 quarters would receive the same payout as those who worked more than 10 quarters, the latter of whom suffered greater injury. Even though the court rejected the settlement, the parties can re-submit an offer that addresses the problem with the second sub-fund.
Whether an overtime claim settles or goes to trial depends on the circumstances. Either way, an experienced team of overtime pay lawyers can help you get the overtime pay you earned. If you believe your employer denied you proper overtime pay, contact our team of overtime pay lawyers today at (855) 754-2795, or complete a Free Unpaid Overtime Case Review form. If we accept your case, we will represent you under our No Fee Promise. You will not be billed for legal fees or other costs unless you receive a settlement.