Judge Certifies Zillow Unpaid Overtime Class Action Lawsuit

Zillow Inc. sales consultants in California received class certification in February with claims that the real estate listing giant violated California overtime pay laws by depriving non-exempt, hourly employees who were working overtime of lunch and rest breaks as well as overtime wages.

In the unpaid overtime class action lawsuit filed in November 2014, plaintiff Ian Freeman accused Zillow of unlawfully circumventing federal and state laws to maximize profits by not paying overtime wages.

The company allegedly used a ‘‘systematic scheme of exploiting and intimidating its employees’’ to miss meal and rest breaks and working overtime without compensation.

“Freeman alleges wage and hour causes of action, or claims derivative thereof. In contrast, the other cases against Zillow involving proposed class counsel raise allegations and causes of action relating to employment discrimination based on age, disability, religion and race,” the court said. “Although certain discrete allegations may tangentially overlap with the issues in Freeman’s class action, the court concludes that proposed class counsel is not inadequate.”

U.S. District Judge Josephine L. Staton granted the bid for class certification, saying the facts ‘‘strongly support’’ the argument that Zillow’s discouragement of working overtime was centralized and common to the class.

‘‘Zillow offers absolutely no evidence that the company, in fact, ever paid a single penny in overtime prior to initiation of this action,’’ Judge Staton wrote in the 13- page order. ‘‘This omission is even more striking in light of the declaration from Zillow’s expert, which confirms that the company started paying overtime wages only after initiation of this lawsuit.’’

Freeman first lodged the complaint against Zillow Nov. 19, 2014, saying the real estate marketplace implemented an automated method of recording its employees’ work hours. The company’s timekeeping system automatically populated with a shift from 8:00 a.m. and 4:00 p.m., regardless of working overtime or breaks missed, according to the Zillow wage and hour class action lawsuit.

The overtime wages lawsuit was amended in April 2015 and then again in June 2015, ultimately including claims for failure to pay wages, failure to pay overtime wages, failure to provide meal or rest breaks and waiting time penalties. The former Zillow employee’s other causes of action were for failure to maintain and provide accurate wage statements, unfair business practices, willful violation of California overtime pay laws and the Fair Labor Standards Act and violation of the FLSA.

California Overtime Pay Laws

California labor law requires minimum compensation for all hours working, including time spent working overtime.  However, it also requires paid rest periods during which an employee “shall not be required to work.”

As many workers know, employers frequently pressure employees to shorten, interrupt, or work through their meal periods. Section 226.7 of the California Labor Code prohibits employers from requiring employees to work during meal or rest periods.

If you are employed in the State of California and feel that your employer has violated a federal or California employment law by failing to pay wages for working overtime, you may qualify for damages that may be awarded in a possible class action or wage and hour lawsuit.

The Zillow Wage and Hour Class Action Lawsuit is Ian Freeman v. Zillow Inc. et al., Case No. 8:14-cv-01843, in the U.S. District Court for the Central District of California.

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