IBM has agreed to pay $65 million to settle a class action lawsuit charging the computer firm with misclassifying employees as exempt from overtime. In particular, the suit alleges, IBM incorrectly classified technical services professionals and information technology specialists as exempt, even though those positions don’t qualify for exemption under California or federal wage and hour law. The lawsuit was filed in January 2006 in the Northern District of California federal court.
In settling the suit, IBM denied the charges and said it settled to avoid the expenses of litigation.
Paying Overtime: 10 Key Exemption Concepts
Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.
Additional Resource:
Who’s Entitled to Overtime: How to Avoid Mistakes When Classifying California Employees, A California Employer Advisor Employer Guide