AT&T to Pay $8M in Wage and Hour Class Action Lawsuit Settlement

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AT&T Mobility Services LLC has reached a settlement in the amount of $8 million to resolve claims in a wage and hour class action lawsuit that alleged the company failed to pay employees when they worked during their meal and rest breaks.

As a result of the settlement, A&T Mobility will set up a settlement fund in order to compensate retail sales consultants and assistant store managers who were not paid for missing breaks under a premium rate structure.

AT&T has also agreed to modify its policies for breaks, ensuring that employees get to take their break, and if skipping it is unavoidable due to work duties, employees will receive the premium pay rate to which they are entitled, according to the proposed wage and hour class action settlement.

Lead plaintiff Tran K. Ly originally filed the AT&T wage and hour lawsuit in 2014, alleging that the telecommunications company violated the California Labor Code Private Attorneys General Act of 2004 (PAGA) by routinely requiring employees to work through their rest periods due to the company’s inadequate staff schedules. Ly also claimed that AT&T did not pay employees their stated premium hourly rate when they were required to work through their breaks.

According to the AT&T class action lawsuit, employees claim that they were also not paid for time that they were required to wait for work devices, like iPads, to be issued or returned to them or for the time they were required to stay for closing procedures after business hours, such as locking building doors and setting the building alarm system.

The AT&T Settlement Class includes nonexempt sales staff and store managers who were employed with AT&T Mobility from April 30, 2010 through the date of preliminary approval, which remains to be determined. As of June 30 2015, the number of employees included in the Settlement Class was estimated at 9,426.

The $8 million AT&T class action settlement includes money that will be distributed to eligible claimants, $42,000 for the California Labor and Workforce Development Agency for civil penalties under PAGA, a service award to Ly in the amount of $15,000 for her role as Class Representative, $60,000 in settlement administration costs, and approximately $2,265,000 for attorneys’ fees and costs.

According to the AT&T class action lawsuit settlement, the company has agreed to initiate new policies in the workplace to ensure that nonexempt sales employees and assistant managers understand that they are expected to take their required breaks.

In addition, supervisors and employees will be made aware of the process to ensure that workers are taking their breaks or are paid their premium pay rates if duties require that an employee work during a break.

Ly stated, “The settlement is fair, reasonable and adequate, given the inherent risk that class certification may be denied, the risk that even if a violation is found penalties and damages may be limited, and the costs of pursuing the litigation.”

More information about the AT&T rest break class action settlement was not immediately available.  Keep checking TopClassActions.com or sign up for our free newsletter for the latest updates. You can also mark this article as a “Favorite” using your free Top Class Actions account to receive notifications when this article is updated.

Ly is represented by Brian J. Robbins and Diane E. Richard of Robbins Arroyo LLP and Matthew S. Dente of Dente Law, PC.

The AT&T Employee Rest Breaks Class Action Lawsuit Settlement is Tran K. Ly v. AT&T Mobility Services Inc., Case No. 3:14-cv-01686, in the U.S. District Court for the Southern District of California.