Calling it “draconian,”
“unfair,” and a “cheap nationwide absolution of its backpay obligations,” a
federal judge in
proposed $9 million settlement agreement in an overtime class action filed
against software maker Oracle, Inc., which is based in the Bay Area city of
charged that Oracle misclassified almost 1,800 sales consultants in 35 states
as exempt from overtime, in violation of the federal Fair Labor Standards Act
and state wage and hour laws.
The court cited various
reasons for rejecting the settlement proposal, including the fact that in light
of evidence that Oracle’s actual liability for back overtime was as much as
$52.7 million, the court needed more information to evaluate whether the $9
million figure was a reasonable amount when balanced against the litigation
risks.
The HR Management & Compliance Report: How To Comply with California Wage & Hour Law, explains everything you need to know to stay in compliance with the state’s complex and ever-changing rules, laws, and regulations in this area. Coverage on bonuses, meal and rest breaks, overtime, alternative workweeks, final paychecks, and more.