Daily Labor Report®

Tesla Salespeople May Get $1M Wage Settlement Notice Soon

Sept. 14, 2018, 5:24 PM

Notices of a settlement in which Tesla Inc. would pay $1 million to settle a lawsuit alleging it underpaid car salespeople may land in employees’ mailboxes soon.

There are 253 salespeople who are eligible to receive payouts, according to settlement documents. The three employees who filed the lawsuit asked a federal magistrate judge to approve the notice they want to send class members.

The notice, which was filed Sept. 13, follows a hearing Magistrate Judge Jacqueline Scott Corley of the U.S. District Court for the Northern District of California held Aug. 30 on the proposed settlement. If Corley grants preliminary approval, the settlement administrator will send the notice to class members and offer them an opportunity to raise objections or opt out entirely and preserve the right to file their own lawsuit.

Corley will evaluate whether the settlement is a fair and reasonable resolution of claims that Tesla required salespeople to work through breaks mandated by state law and failed to pay overtime by improperly claiming an exemption for workers who earn commissions. Final approval also hinges on how many class members object or opt out.

The case is Wilson v. Tesla, Inc., N.D. Cal., No. 3:17-cv-03763, proposed notice 9/13/18.

To contact the reporter on this story: Jon Steingart in Washington at jsteingart@bloomberglaw.com

To contact the editor responsible for this story: Terence Hyland at thyland@bloomberglaw.com

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