Pa.: Comcast Settles Collective Action for FLSA Violations for $453,900

By Rosemarie Lally Jun 9, 2015

Comcast Corp. agreed April 15, 2015, to pay $453,900 to settle a collective action lawsuit alleging it had violated the Fair Labor Standards Act (FLSA) in failing to pay overtime wages to employees at its Horsham, Pa., location.

Under the settlement agreement, approved by a federal district court, Comcast promised to pay $453,900 to settle claims brought by 420 class members who claimed the company failed to pay them for the hours they worked in excess of 40 per week. The sum is inclusive of attorneys’ fees, court costs, and class representative service payments.

Preliminary calculations indicate the settlement will award about $1,250 to each member of the class who alleged that Comcast violated the FLSA and state labor law, with Karis Rouse receiving an additional $2,500 for serving as class representative. Counsel representing the class members will receive $158,865 in attorneys’ fees and $4,445.55 in costs as part of the settlement.

Rouse, who was hired as a sales representative and later became a sales supervisor, alleged that Comcast misclassified him and more than 100 other workers as “exempt” under the FLSA so that they would not be paid overtime –time-and-a-half for each hour worked in excess of 40 in a week.

He and the other sales representatives in the office primarily made and answered phone calls to sell Comcast products. Rouse claimed that they routinely performed work before and after their scheduled shifts without appropriate compensation.

Comcast also was accused of violating Pennsylvania’s Minimum Wage Act and its Wage Payment and Collection Law.

Rouse v. Comcast Corp., E.D. Pa., Case 2:14-cv-01115, April 15, 2015.

Rosemarie Lally, J.D., is a freelance legal writer and editor based in Washington, D.C.

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