California Judge Rejects $7.5M Comcast Settlement Due to Systemic Wage and Hour Violations

A California judge recently rejected the $7.5M settlement proposed in the Comcast case alleging wage and hour violations under both state and federal law. The rejection was apparently based on the judge’s view that the FLSA violations were systemic and the settlement did not relieve his suspicions that defendant’s practices would continue in the future.

A group of technicians filed the lawsuit against O.C. Communications Inc. (OCC), Comcast Corporation and Comcast Cable Communications Management, LLC. The techs handled installation of cable, television, phone, security and internet services and claimed that the OCC and Comcast employed them as “joint” employers. The plaintiffs in the suit were classified by their employer/s as non-exempt employees. They performed installations on behalf of the Defendant throughout the country, working 5-6 days per week and up to 10 hours per day. According to the plaintiffs, they were paid on a hybrid pay system combining hourly rates with piece rates and based on the different jobs and tasks they performed on the job for customers of Comcast.

Plaintiffs in the case insist they were frequently pressured to under-report the number of hours they worked and to report meal breaks that they never took. Plaintiffs also allege that their time cards were manipulated to reduce their hours, reimbursements requests for necessary expenses were refused, they were actively prevented from taking lawfully required meal and rest breaks, and wage statements issued by the company purposefully concealed the rate of pay for work.

Both parties involved in the case agreed on the $7.5 million settlement and requested approval, but the California judge denied the parties’ request noting the substantial merit of alleged wage and hour violations in the case, and the apparent “systemic” nature of the Defendant’s actions. The judge described the proposed settlement as having been achieved at a discount that was difficult or the court to swallow without assurances that the alleged FLSA violations were unlikely to recur in the future.

If you have questions about wage and hour law or if you have experienced FLSA violations in the workplace, please get in touch with one of the experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik De Blouw LLP.