CareerBuilder reduced commissions $3.8M class action lawsuit settlement

CareerBuilder agreed to a nearly $3.8 million settlement to resolve class action lawsuit claims it changed its compensation plans in 2019 to reduce commissions.

The settlement benefits individuals who: were employed by CareerBuilder as an account executive, senior account executive, major account executive, national account executive or key account executive; were compensated under CareerBuilder’s Revenue Rep plans dated Jan. 1, 2018 and/or Aug. 1, 2018; and closed a sale before March 1, 2019 that generated revenue after March 1, 2019.

CareerBuilder is a job-search platform that connects employers with job candidates based on their skill sets. The company is backed by Apollo Global Management and its subsidiaries operate in the U.S., Canada, Europe and Asia.

According to a 2019 class action lawsuit, CareerBuilder denied its employees the commissions they were owed when it implemented a new compensation plan in 2019. Under the new compensation plan, employee commissions were allegedly reduced or later eliminated. 

Under the former compensation plan, CareerBuilders were reportedly eligible for commissions between 2% and 4% of all revenue generated through sales. Under the March 2019 plan, sales representatives allegedly had their commissions cut to between 0% and 0.25%. 

Although this was valid for future commissions, plaintiffs in the case say CareerBuilder used the new compensation plan to deny commissions employees already earned. The company allegedly announced in July 2019 it would not pay any commissions made under prior plans.

The CareerBuilder class action lawsuit argues this conduct violated the Illinois Sales Representative Act, the Illinois Wage and Payment Collection Act and other laws.

CareerBuilder hasn’t admitted any wrongdoing but agreed to pay $3,787,500 to resolve these class action lawsuit allegations.

Under the terms of the CareerBuilder lawsuit settlement, class members can collect a cash payment. Payments from the settlement will be calculated using each class member’s maximum potential revenue bonus had the Jan. 1 and July 1, 2018, compensation plans continued from March 1, 2019. Actual payments and statutory interest will be applied to this total to generate payment amounts.

Although these calculations will be used universally, exact payments will vary between class members depending on their commissions, revenue bonuses, and claimed losses. Additionally, the share of the settlement each class member can claim will depend on the net settlement fund and the number of claims submitted. Payments may be reduced on a pro rata basis if a large number of claims are filed.

The deadline for exclusion and objection in the case is Oct. 5, 2022. 

The final approval hearing for the CareerBuilder class action lawsuit settlement is scheduled for Nov. 14, 2022.

In order to receive benefits from the settlement, class members must submit a valid claim form by Oct. 5, 2022.

Who’s Eligible

Individuals who: 

• Were employed by CareerBuilder as an Account Executive, Senior Account Executive, Major Account Executive, National Account Executive or Key Account Executive; 
• Were compensated under CareerBuilder’s Revenue Rep plans dated 01/01/2017 and/or 08/01/2018;
• And closed a sale before 03/01/2019 that generated revenue after 03/01/2019

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Claim Form

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.

Claim Form Deadline

10/05/2022

Case Name

Fongers v CareerBuilder LLC, et al., Case No. 2019-CH-12804 in the Circuit Court for Cook County, Illinois

Final Hearing

11/14/2022

Settlement Website

CareerBuilderSettlement.com

Claims Administrator

Settlement Administrator
P.O. Box 26170
Santa Ana, California 92799
(888) 369-3780

Class Counsel

Paul T Geske
MCGUIRE LAW PC

Defense Counsel

Andrew Scroggins
SEYFARTH SHAW LLP