EEOC v. Morgan Stanley
Active Case
Galdamez v. TherapyMatch d/b/a Headway
Outten & Golden LLP represents a former sales representative of TherapyMatch, Inc., doing business as Headway, who alleges that the online therapy portal denied overtime pay even though it regularly required employees to work more than 40 hours per week to meet aggressive quotas and productivity requirements.
The plaintiff worked for Headway in a sales‑focused role known as Provider Growth Associate. She filed her lawsuit on April 17, 2026, in the U.S. District Court for the Southern District of New York on behalf of a proposed nationwide collective of sales representatives holding titles such as Account Executive, Provider Growth Associate, Senior Provider Growth Associate, and Sales Associate. The complaint alleges that Headway misclassified sales representatives as exempt from the Fair Labor Standards Act’s overtime requirements.
For California‑based sales representatives, the lawsuit also alleges violations of the California Labor Code, including failure to pay overtime after working more than eight hours in a day and failure to reimburse employees who worked from home for business expenses such as internet costs. It further asserts related claims for providing wage statements that did not accurately reflect overtime worked and for failing to pay overtime wages in final paychecks at the end of employment.
According to the complaint, sales representatives’ duties included identifying prospective customers, contacting providers, booking sales calls, and selling access to Headway’s software platform—work that doesn’t qualify for an overtime exemption.
The proposed class and collective action seeks to recover overtime wages the sales representatives should have been paid as well as penalties for the California Labor Code violations.
Framing the Issue
Misclassifying employees as exempt from overtime requirements causes huge shortfalls in their paychecks. A 2023 study from the National Bureau of Economic Research found that one common basis for misclassifying employees as exempt – dubiously labeling them managers, even though they don’t really manage a company – cost individuals an average of $3,000 per year.
Wage theft can affect employees in any industry. Enforcement data from the U.S. Department of Labor show major problems in food services, health care, and construction, where the number of workers affected, the number of violations that occur, and the amount of unpaid wages recovered far exceed other sectors.
It can be helpful to keep track of the hours you work and pay you receive, as well as breaks you take or expenses you incur for your employer. Having these records handy can help you spot any pay mix-ups and back you up if you ever need to sort out missing wages or overtime.
