Appeal Delays $7.7M Verizon Overtime Class Action Settlement

Verizon Wireless is set to pay $7.7 million to settle a wage and hour class action lawsuit filed against the communications company. U.S. Magistrate Judge Maria Valdez approved the Verizon overtime settlement in late October, which will compensate Verizon Wireless retail employees who allege the company refused to pay them overtime and bonuses. Payments to eligible employees are being delayed, however, due to an appeal that was filed disputing the fairness of the class action settlement deal.

Plaintiffs alleged in the Verizon overtime class action lawsuit that by denying workers their rightfully-earned wages and denying bonuses, Verizon had violated the Fair Labor Standards Act (FLSA) and state wage laws.  This class action has taken more than two years to process, and to accurately determine whether or not the retail employees were not properly compensated for their work.  The preliminary settlement agreement was only met with a single objection, which Valdez denied and awarded the plaintiff party.

The Verizon overtime class action lawsuit was first filed in 2011 by Verizon employees Jeremy Cioe and Sarom Ped. Both plaintiffs had filed separated wage and hour lawsuits in Illinois, alleging that the company had breached labor laws.  Cioe had sued first in February 2011, alleging that Verizon was illegally adjusting overtime amounts for bonuses and other incentive-based compensation.  Ped, an assistant manager, claimed the way they paid him was through an in-home constructed payment system called “Salary Plus,” to avoid paying him overtime.

In July 2012, they combined their cases, and Verizon agreed to enter mediation at this point in the litigation process.  After two mediation sessions, a class action settlement was reached under Judge Valdez.  The wireless store employees covered under the deal have agreed to divide the Verizon overtime settlement between themselves, into what they would have earned if the company had paid them overtime.

The $7.7 million Verizon overtime settlement will be distributed to all Verizon Wireless retail sales employees in the United States (such as a store, kiosk or in-store location) who were classified and paid overtime as nonexempt or Salary Plus employees between March 16, 2008 and Feb. 15, 2013. These employees had to submit a Claim Form by Sept. 30, 2013 in order to receive money from the class action settlement. Money will not be distributed until all appeals are resolved.

Upon this agreement, Cio and Ped will each be paid $12,500 for representing the class.

Despite agreeing to the class action settlement, Verizon still denies any wrongdoing or violation of any kind, before and after the litigation process.  The company cooperated with the plaintiffs in the litigation process, save for the single objection, and has agreed to adopt a new system to log an employee’s work time for any future class-action case.

The Verizon Unpaid Overtime Class Action Lawsuit is Jeremy Cioe vs. Verizon Communications Inc., Case No. 1:11-cv-01002, in the United States District Court of Northern Illinois. More information and updates on the appeal can be found at the Settlement Administrator site: www.VerizonWirelessRetailSettlement.com.

File an Unpaid Wage and Hour Lawsuit Today

If you were forced to work off the clock or without overtime pay compensation within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone.  Obtain a free legal review of your potential case to see if you qualify to join a class action lawsuit, at no cost to you, at the Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.

The most common wage and hour complaints are:

• Unpaid Overtime
• Unpaid Wages
• Off-the-Clock
• Misclassification
• Missed Meals & Breaks
• Donning & Doffing
• Less than Minimum Wage
• Tip Pooling