News Notes: Phone Company To Fork Over Millions To Settle Overtime Claims

In a development that highlights the expensive consequences of misclassifying employees as exempt from overtime, San Francisco-based Pacific Bell has reportedly promised to pay out huge damages-$27.8 million-to settle a class action lawsuit involving claims for unpaid overtime. The case involved 600 current and former sales support managers who were classified as exempt from overtime. The managers, however, claimed that they spent too little time supervising others to be considered exempt and demanded that the phone company compensate them for back overtime. Pacific Bell refused to comment on the case.