IBM Settles Overtime Class Action for $65 Million
IBM has agreed to pay $65 million to settle a class action wage and hour suit filed by current and former technical workers who claimed they were incorrectly classified as exempt from state and federal overtime pay rules. "Litigation of this case would have been lengthy, burdensome and expensive, and...
November 27, 2006 at 11:11 AM
2 minute read
The original version of this story was published on Law.com
IBM has agreed to pay $65 million to settle a class action wage and hour suit filed by current and former technical workers who claimed they were incorrectly classified as exempt from state and federal overtime pay rules.
“Litigation of this case would have been lengthy, burdensome and expensive, and IBM chose to resolve it, without admitting any wrongdoing or liability, for a total of $65 million,” the company said in a Nov. 22 statement. “IBM continues to believe that its payment practices are fair and comply with all applicable laws and regulations.”
The suit, filed in January in Federal District Court in San Francisco by three current and former IBM employees, claimed that workers classified as technical services professionals and information technology specialists should have qualified for overtime pay. The suit claimed the employees routinely worked more than 40 hours per week.
Each of the 32,000 workers in the two job categories will be entitled to apply for a payment, according to the terms of the settlement.
IBM has agreed to pay $65 million to settle a class action wage and hour suit filed by current and former technical workers who claimed they were incorrectly classified as exempt from state and federal overtime pay rules.
“Litigation of this case would have been lengthy, burdensome and expensive, and IBM chose to resolve it, without admitting any wrongdoing or liability, for a total of $65 million,” the company said in a Nov. 22 statement. “IBM continues to believe that its payment practices are fair and comply with all applicable laws and regulations.”
The suit, filed in January in Federal District Court in San Francisco by three current and former IBM employees, claimed that workers classified as technical services professionals and information technology specialists should have qualified for overtime pay. The suit claimed the employees routinely worked more than 40 hours per week.
Each of the 32,000 workers in the two job categories will be entitled to apply for a payment, according to the terms of the settlement.
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllGoogle Fails to Secure Long-Term Stay of Order Requiring It to Open App Store to Rivals
Rates Will Go Up (Again), But Here's Why Profitability Might Not Be Maximized
4 minute readFinancial Services Has a Trust Problem. Can GCs Help Right the Ship?
Trending Stories
- 1The Law Firm Disrupted: Playing the Talent Game to Win
- 2A&O Shearman Adopts 3-Level Lockstep Pay Model Amid Shift to All-Equity Partnership
- 3Preparing Your Law Firm for 2025: Smart Ways to Embrace AI & Other Technologies
- 4BD Settles Thousands of Bard Hernia Mesh Lawsuits
- 5A RICO Surge Is Underway: Here's How the Allstate Push Might Play Out
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250