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Tesla’s $1 Million Settlement of Wage Claims Gets Final Approval

July 9, 2019, 4:42 PM

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 claimed an exemption for workers who earn commissions.

The settlement agreement includes $333,333 in attorneys’ fees, $20,000 for litigation costs,...

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