ADT $2.7M Unpaid Wages Class Action Settlement Approved

A California federal judge recently approved a $2.7 million settlement over an unpaid wages class action lawsuit. The lawsuit, filed by two subclasses of sales representative employees, alleges that their employer, ADT LLC, failed to adequately compensate work-related expenses.

According to the unpaid wages lawsuit, ADT LLC, a home security system company, did not pay its sales representatives for work-related vehicle expenses. Furthermore, the lawsuit alleges that the company didn’t provide accurate itemized wage statements.

The approval order from U.S. District Judge William B. Shubb is the final approval needed for the $2.7 million settlement to be official after two years. The litigation was initially brought against ADT LLC in 2014, by lead plaintiff Shirley Garnett.

The lawsuit claimed violations of the California Labor Code over vehicle expense and wage statement claims.

“In comparing the strength of plaintiff’s case with the proposed settlement, the court finds that the proposed settlement is a fair resolution of the issues in this case,” wrote Judge Shubb in this final approval order.

Lead plaintiff Shirley Garnett is a former ADT sales representative. She worked as a sales rep between July 2012 and July 2014, selling alarm systems to homeowners on commission.

Garnett alleged in the class action lawsuit that ADT didn’t properly reimburse her for work-related vehicle expenses, costing her money in simply performing her required work duties. Garnett also alleged that ADT did not provide accurate itemized wage statements, violating the California Labor Code.

ADT denied the claim over inaccurate wage statements, arguing that Garnett was an “outside salesperson,” and therefore exempt from the requirement from the California Labor Code that employees should be provided with such statements.

However, the judge disagreed in October, stating that Garnett was not exempt from this requirement. This granted Garnett partial summary judgment.

“Concededly, the court cannot discern any reason other than idle curiosity why this plaintiff would have needed or even wanted to know how many hours she worked,”  Judge Shubb wrote. “Nevertheless, that is not necessary for a finding of injury under the statute.”

ADT Unpaid Wages Settlement Details

After this approval, $1.6 million of the $2.7 million total unpaid wages settlement will go to a class of around 1,600 members. The average class member is expected to receive $1,480, while the highest amount is $4,280.

The two subclasses involved in the unpaid wages lawsuit are certified. One of these subclasses encompasses class members who filed for incomplete wage statement claims.

The other subclass covers those who complained of work-related vehicle expense reimbursement claims. The applicable dates for these claims are of sales representatives for ADT who worked between October 1, 2010, and April 18, 2016.

A further $891,000 will go to attorneys’ fees, covering around 1,540 hours of attorney and paralegal work.

The settlement also provides $7,500 for Garnett as lead plaintiff.

If you have worked for an employer like ADT that has failed to adequately follow the wage and hour laws of the Fair Labor Standards Act (FLSA) or state labor laws, you may be able to join a wage and hour class action lawsuit or file a lawsuit individually.

The ADT Unpaid Wages Class Action Lawsuit is Shirley Garnett v. ADT LLC et al., Case No. 2:14-cv-02851 in the U.S. District Court for the Eastern District of California.

Join a Free California Overtime, Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now