$1.5 Million Settles Timeshare Company’s Wage Class Action
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In recent news, a timeshare company agrees to settle a California wage and hour class action for $1.5 million.
Details of the Case: Anders Pagh v. Wyndham Vacation Ownership, Inc.
Court: United States District Court Central District of California
Case No.: 8:19-cv-00812
California Federal Judge Approves $1.5M Settlement:
A California federal judge approved the $1.5 million settlement to resolve two consolidated wage and hour class actions. The class actions were brought by sales workers claiming a timeshare company, Wyndham Destinations Inc. and their subsidiary shorted them earned wages and mandatory paid rest periods. U.S. District Judge John Holcomb issued the final judgment approving the settlement between the two parties. The court found that the proposed settlement offered notable monetary recovery for class members and that the suggested amount was fair, adequate, and reasonable in comparison to continued litigation and the associated costs for both parties.
The Plaintiffs:
The plaintiffs in the case were sales representatives of Wyndham Vacation Ownership Inc. and Wyndham Destinations Inc. who alleged that the commission pay system used by the giant timeshare company cheated them out of fair wages, violated minimum wage law, and violated mandatory rest break laws. Originally, the plaintiffs, Pagh and Lee Forney, filed two separate wage and hour class actions against the Wyndham brands. However, the two plaintiffs entered a joint prosecution agreement in summer of 2019.
Allegations in the Case:
The plaintiffs in the case claim they worked under commission or a commission-draw system. Under this system, employees were effectively paid an advance on their projected future sales. Based on this pay system, workers claimed they didn’t receive payment for non-sales-related work time. They also claim they didn't get paid 10-minute rest breaks while working for Wyndham on commission. In a motion for preliminary settlement approval, Wyndham brands argued that their pay system was not commission-draw based.
The Results of the Settlement:
The approved $1.5 million settlement will cover plaintiffs’ attorney fees, costs, and settlement administration costs, as well as $10,000 service awards for two lead plaintiffs, Anders Pagh and Jerry Lee Forney. Class members include current and former California sales force employees employed by Wyndham Vacation Ownership Inc. and Wyndham Destinations Inc. as long as they were paid on commission between July of 2017 and April of 2020.
If you have questions about California labor law violations or how employment law protects you against labor law violations, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced employment law attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.
