Zillow Overtime Lawsuit Settled for $6 Million

Real estate market place company Zillow has agreed to pay $6 million to settle with a group of sales representatives who alleged major wage and hour violations.

This class action Zillow overtime lawsuit settlement also provides an end to a review process of its wage and hour policies by the U.S. Department of Labor (DOL).

According to the class action Zillow overtime lawsuit, the settlement is applicable to current and former inside sales consultants who worked for the company.

These employees must have worked in the states of California and Washington from November 2010 through February 2016.

This settlement also ends the DOL’s Wage and Hour Division’s review of Zillow’s wage policies for consultants, in the specified states during the years 2013 and 2015.

Zillow representatives stated that the DOL determined the company had sufficiently fulfilled its obligations in the class action, and did its best to work with employees to come to the settlement. The representative also stated that the company works hard to provide an adequate work environment to their employees.

According to the class action Zillow overtime lawsuit, the settlement was first announced in May 2016 without much detail or preliminary approval filings. Instead, the parties stated they had reached an agreement and were waiting to “resolve outstanding contingencies” in the agreement.

The court had granted several extensions to the parties, in order to sufficiently follow administrative procedure. On Nov. 18, 2016, the parties told U.S. District Judge Josephine L. Staton that they had reached a settlement agreement and had later filed papers by Dec. 02, 2016.

Overview of Class Action Zillow Overtime Lawsuit

Plaintiff Ian Freeman had first filed the Zillow overtime lawsuit in November 2014, but amended the clam when Judge Staton ruled in March 2015 that his allegations failed to adequately prove overtime allegations.

According to court records, Freeman failed to show that he worked 40 hours in one week and was not paid for the excess hours, which was established by the Ninth Circuit’s 2014 ruling in Landers v. Quality Communications Inc.

Judge Staton later certified a class of Zillow inside sales consultants in February 2016, after each member proved to have similar issues with the company’s automated timekeeping system. In addition, the company allegedly coerced employees to work overtime or skip rest breaks.

In each of these instances, employees reportedly never received compensation or overtime benefits. Under federal employment law, companies are required to pay employees 1.5x the hourly pay rate if the employee works over 40 hrs per week unless if the employee meets exemption requirements.

In addition, employees forced to work during rest periods or meal breaks are entitled to extra pay.

The Zillow Overtime 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.

Join a Free Wage & Hour Class Action Lawsuit Investigation

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

Get a Free Case Evaluation Now