Judge Dismisses IBM Overtime Pay Suit
A federal judge for the Northern District of California dismissed a class action suit against IBM Oct. 12. The suit, filed in May by former IBM sales representative Tom Chau, claimed...
October 23, 2007 at 09:09 AM
3 minute read
The original version of this story was published on Law.com
A federal judge for the Northern District of California dismissed a class action suit against IBM Oct. 12. The suit, filed in May by former IBM sales representative Tom Chau, claimed the computer giant's California-based sales specialists did not receive overtime compensation or meal and rest breaks. According to the complaint, Chau believed the class exceeded 100 individuals.
District Judge Maxine Chesney granted IBM's motion for summary judgment, citing a general release Chau signed upon his departure from IBM. Chau, who was terminated in 2004 as part of a reduction in force, agreed to waive all claims relating to his employment with IBM so he could receive $9,681 in separation pay.
According to court documents, IBM repeatedly advised Chau to consult an attorney before signing; in addition, each page of the release provided the same advice in bold typeface.
“[Chau's] claims are barred by the plain language of a valid and enforceable general release and covenant not to sue,” Chesney wrote in a proposed order. “That release … covers all of the claims that [Chau] seeks to assert in this case.”
The case mirrors other labor suits recently filed against IBM. In January 2006, IBM settled another California class action filed by workers who claimed they were denied overtime pay, agreeing to pay $65 million to 32,000 workers. In July of this year three California-based IBM sales reps also sued claiming IBM denied them overtime pay and rest and meal breaks.
A federal judge for the Northern District of California dismissed a class action suit against IBM Oct. 12. The suit, filed in May by former IBM sales representative Tom Chau, claimed the computer giant's California-based sales specialists did not receive overtime compensation or meal and rest breaks. According to the complaint, Chau believed the class exceeded 100 individuals.
District Judge Maxine Chesney granted IBM's motion for summary judgment, citing a general release Chau signed upon his departure from IBM. Chau, who was terminated in 2004 as part of a reduction in force, agreed to waive all claims relating to his employment with IBM so he could receive $9,681 in separation pay.
According to court documents, IBM repeatedly advised Chau to consult an attorney before signing; in addition, each page of the release provided the same advice in bold typeface.
“[Chau's] claims are barred by the plain language of a valid and enforceable general release and covenant not to sue,” Chesney wrote in a proposed order. “That release … covers all of the claims that [Chau] seeks to assert in this case.”
The case mirrors other labor suits recently filed against IBM. In January 2006, IBM settled another California class action filed by workers who claimed they were denied overtime pay, agreeing to pay $65 million to 32,000 workers. In July of this year three California-based IBM sales reps also sued claiming IBM denied them overtime pay and rest and meal breaks.
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