Zynga Overtime Class Action Settlement Approved

The second time proved to be the charm for getting a judge to approve an unpaid overtime class action settlement reached between Zynga software engineers and the social game developer, now a Facebook property.

At first, federal Judge Nathanael M. Cousins was hesitant to approve the Zynga overtime settlement because the class action lawsuit had been filed as a putative class action on behalf of any current or former software engineer, quality assurance or other skilled personnel at the company, yet the original class action settlement was under seal.

As a putative class representative, Judge Cousins believed that it could have an adverse effect on those similarly situated if the terms were not made public. Lead plaintiff Andrew Luo and Zynga agreed to those stipulations where he is to receive $12,000, or the equivalent of 144 hours of overtime to resolve the wage and hour complaint.

Judge Cousins also noted that the agreement would preclude Luo from filing a future claim regarding family leave and payments therein. He agreed that the settlement was fair because it was not a certainty that he would qualify as a non-exempt employee under the Fair Labor Standards Act.

The two parties had disagreed on the extent of the software engineer’s duties. Luo believed that he had no supervisory duties while Zynga had alleged that he directed other employees in various programs. The FLSA provides for overtime for those who do not oversee others, but allows for exempt status for managers and those similarly situated.

Attorneys for the defense and Luo’s wage and hour lawsuit attorney also wrote that the settlement would not have an undue effect on any other putative class members and the judge agreed because “the lack of publicity makes it unlikely that similarly situated class members knew of the present lawsuit and relied on it for vindication of their own rights,” and that further they can still take legal action on their own.

The Zynga Overtime Class Action Lawsuit is Andrew Luo v. Zynga Inc., Case No. 13-cv-00186, U.S. District Court, Northern District of California.

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