ADT Overtime Settlement of More Than $1 Million Reached

A $1 million ADT overtime settlement was approved by a California federal judge on Wednesday, Jan. 25^th.

U.S. District Judge William B. Shubb approved the deal between a class of 427 home alarm installers and the large home security company.

The workers alleged that ADT had not paid the nonexempt employees for overtime, business expenses and off-the-clock work they performed.

What the ADT Overtime Settlement Provides

Approximately $679,400 will be distributed among the 291 class members who participated in the lawsuit.

Each individual’s portion of the ADT overtime settlement will depend upon the number of weeks worked between April 18, 2013 and Nov. 1, 2016.

The judge also awarded the class $349,800 in attorneys’ fees and $14,080 in litigation costs.

“In light of the uncertainties the plaintiff would have faced had he not settled this case, the court finds that the proposed settlement, which will provide an average recovery totaling in the thousands of dollars to class members, is a fair resolution of the claims brought in this case,” the order said.

The average amount per class member will be about $2,334, representing 33 percent of the maximum possible recovery.

The ADT overtime settlement was brought about because employees known as high-volume installers were not paid for actions such as traveling between customers’ homes and to warehouses to pick up supplies, which violates California wage and hour laws.

Of the 427 eligible class members, 291 submitted claims. No one filed an objection to the ADT overtime settlement, but seven class members opted out, according to the order.

The parties had been negotiating for more than a year before reaching the ADT overtime settlement. The class action lawsuit’s lead plaintiff Ricardo Castillo filed the action in February 2015.

California Wage and Hour Laws

California wage and hour laws are different than those in other states. The federal minimum wage is $7.25 per hour, but in 2016, the state of California approved a gradual increase of the minimum wage rate based on the size of the employer.

For 2017, the minimum wage is $10 for employers who have up to 25 employees, and it is $10.50 an hour for employers who have 26 or more employees.

In 2018, those figures will increase to $10.50 and $11 respectively. The annual increases are set through 2023 when all employers must honor a minimum wage of $15 per hour.

Also, California wage and hour laws dictate that even tipped employees are entitled to the full minimum wage per hour worked. (Some states allow employers to pay tipped employees a lower minimum wage.)

If an employee works more than eight hours in one day or more than 40 hours in one week, that employee is owed overtime pay of one and one-half times the regular rate of pay. If an employee works a 12-hour shift, that employee in California must be paid double time.

California wage and hour laws are overseen by the state’s Labor Commissioner.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

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

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