California AT&T wage-and-hour $575K class action settlement

AT&T agreed to pay $575,000 as part of a settlement to resolve claims it failed to pay its California workers minimum and overtime wages.

The settlement benefits individuals who worked for AT&T Mobility Services in California between Nov. 2, 2021, and Sept. 21, 2022, and who were classified as non-exempt employees.

AT&T is a phone company that provides cellular services to consumers. The company also offers internet and TV plans.

According to a class action lawsuit against AT&T, the company wrongfully classified certain employees as non-exempt. As a result, these employees were allegedly denied benefits such as minimum wage and overtime wages. Plaintiffs in the class action lawsuit claim AT&T’s actions violated California labor laws.

California has some of the strictest labor laws in the country. Businesses must comply with these requirements or risk facing legal action. Consumers, including the plaintiffs in the AT&T class action lawsuit, can file claims under the Private Attorneys General Act (PAGA) which allows them to seek penalties for the state’s labor regulator.

AT&T hasn’t admitted any wrongdoing but agreed to a $575,000 class action settlement to resolve these allegations. This includes a $7,500 payment to the California Labor and Workforce Development Agency under PAGA.

Under the terms of the AT&T settlement, class members will receive a pro rata cash payment based on the number of weeks they worked during the class period. Class members who worked a higher number of workweeks during this period will receive a proportionally larger share of the net settlement fund.

Class members may have been given a payment estimate on their mailed settlement notice, though this number could change. Exact payments from the settlement will vary depending on how many class members participate in the settlement and the total net settlement fund after various deductions. 

For tax purposes, half of each AT&T settlement payment will be considered wages and be subject to a W-2 tax form. The other half of each payment will be considered non-wage penalties, damages and interest and be subject to a 1099 tax form. 

Class members may wish to consult a tax professional regarding the tax consequences of their settlement payment.

The deadline for exclusion and objection is Nov. 25, 2022. 

The final approval hearing is scheduled for Jan. 4, 2023.

No claim form is required to receive benefits from the AT&T settlement. Class members who do not submit an opt-out request will automatically receive a payment as described above.

Who’s Eligible

Individuals who worked for AT&T Mobility Services in California between Nov. 2, 2021, and Sept. 21, 2022, and who were classified as non-exempt employees.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

No claim form applicable

NOTE: If you do not qualify for this settlement do NOT file a claim.

Remember: you are submitting your claim under penalty of perjury. You are also harming other eligible Class Members by submitting a fraudulent claim. If you’re unsure if you qualify, please read the FAQ section of the Settlement Administrator’s website to ensure you meet all standards (Top Class Actions is not a Settlement Administrator). If you don’t qualify for this settlement, check out our database of other open class action settlements you may be eligible for.

Exclusion Deadline

11/25/2022

Case Name

Razo, et al. v. AT&T Mobility, Case No. 1:20-cv-0172 JLT HBK in the U.S. District Court for the Eastern District of California

Final Hearing

01/04/2023

Settlement Website

RazoAttSettlement.com

Claims Administrator

Razo v. AT&T Settlement
c/o Atticus Administration
PO Box 64053
St. Paul, MN 55164
800-644-0558

Class Counsel

Marcus J Bradley
Kiley L Grombacher
Lirit A King
BRADLEY GROMBACHER LLP

Sahag Majarian
LAW OFFICES OF SAHAG MAJARIAN II

Defense Counsel

Raymond W Bertrand
James P De Haan
PAUL HASTINGS LLP