United States District Court, Northern District of California
Settled for $4.6 Million on December 12, 2024
Outten & Golden LLP represented a group of nearly 600 sales representatives at Odoo, Inc., a global business management software company, in a lawsuit alleging it misclassified them as exempt from overtime requirements.
This case began on July 27, 2023, when three Odoo employees filed a lawsuit seeking to represent a class and collective of sales representatives working in California and New York.
These sales representatives held job titles such as Account Executive, Account Manager, and Customer Success Manager. Their duties included contacting customers and selling software, which doesn’t qualify for an exemption from overtime requirements, the lawsuit claimed.
Odoo also imposed challenging productivity goals that allegedly required sales reps to work more than 40 hours per week. Despite the long days, the employees did not receive overtime pay for the extra hours, they claimed.
The plaintiffs’ complaint, filed in San Francisco federal court, alleged violations of the federal Fair Labor Standards Act and state laws in California and New York. In addition to the overtime claims, they alleged related violations including failing to provide accurate wage statements and failing to reimburse California employees for business expenses.
They also filed a claim for penalties under California’s Private Attorneys General Act (“PAGA”). PAGA lets employees sue on behalf of themselves, other employees, and the state to recover penalties for violations of the California labor code.
Settlement
The parties litigated the case for nearly two years before they agreed to a settlement. On December 12, 2024, U.S. Magistrate Judge Lisa J. Cisneros granted final approval to the agreement.
Odoo agreed to pay $4,647,474.68, which covers payments to 599 class members, attorneys’ fees, costs, and settlement administration expenses. The average amount is $4,850.46 and the highest payment to a class member is $24,064.03.
Outten & Golden LLP is committed to upholding the rights of workers and holding employers accountable to adhere to labor laws. If you have faced similar issues in your workplace or have concerns about your employment rights, please don’t hesitate to reach out to us. Your rights are important, and we are here to support you.
(*Prior results do not guarantee a similar outcome.)
