Tesla Inc. will pay just over $1 million to settle a class action alleging it underpaid salespeople by not providing breaks or overtime pay, according to a final settlement order.

Magistrate Judge Jacqueline Scott Corley gave final approval on July 8 to the settlement between Tesla and 282 salespeople who claimed in a June 2017 lawsuit they should have been paid overtime and given meal and rest breaks. The lawsuit said the Palo Alto, Calif.-based automaker and technology company improperly...