AT&T Agrees to $5M Unpaid Overtime Class Action Settlement

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AT&T Mobility Services Inc. LLC agreed to a $5 million class action settlement in a wage and hour lawsuit filed by AT&T employees who work at its retail stores and allege that the wireless phone service company owes them overtime pay and other wages.

The unpaid overtime class action lawsuit was filed by Andrew Prizler. He filed a motion for final approval of the class action settlement on August 21.

There will be a hearing on September 15 at the U.S. District Court for the Central District of California, located in Los Angeles.

Prizler says that “the motion is made on the grounds that the settlement is the product of arms’ length, good faith negotiations; is fair and reasonable to Class members; and should be approved.”

The wage and hour lawsuit filed by Prizler alleges that AT&T did not pay wages for all hours worked including unpaid overtime wages as well as failing to provide timely and accurate wage statements, and failing to pay wages when employees were fired.

“Plaintiff’s central contention was that defendant failed to properly calculate wages for Retail Sales Consultants who both worked overtime and earned commissions attributable to the workweek in which they worked overtime,” the motion seeking approval of the unpaid overtime settlement says.

“Plaintiff contended that the amount of commissions were not included when calculating the ‘regular rate’ resulting in underpayment of overtime wages,” the motion continues.

AT&T was charged with conducting unfair business practices and violating the California Private Attorney General Act, as well as other parts of California’s labor laws.

Prizler’s unpaid overtime class action lawsuit initially was for AT&T retail store employees who had began working for the company in 2008, but Prizler and AT&T later agreed to limit class members to those who had started working for the wireless company in October 2010.

Settlement negotiations began a few months after the lawsuit was filed in 2012. A deal was reached and presented to the court for preliminary approval in December 2013 and granted in March.

According to Prizler, “the settlement provides the class members with prompt relief, whereas continued litigation would both increase costs and drag the possibility of recovery into the distant future.”

The Class is for all AT&T retail sales consultants who worked in AT&T retail stores from Oct. 19, 2010 to Oct. 27, 2012, and worked overtime during any week during that period and also earned commissions during that same week.

Prizler predicts that there will be about 2,600 employees that will participate in wage and hour class action settlement.

AT&T is represented by Matthew C. Kane, Michael D. Mandel, Sabrina A. Beldner and Christopher A. Killens of McGuireWoods LLP.

The AT&T employees are represented by Matthew Righetti, John Glugoski and Michael Righetti of Righetti Glugoski PC.

The Unpaid Overtime Class Action Lawsuit is Prizler v. AT&T Mobility Services Inc., et al., Case No. 2:12-cv-06016, in the U.S. District Court for the Central District of California.

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