EEOC v. Morgan Stanley
Resolved Case
Kayed v. Odoo
This case began in July of 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.
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.
