AT&T Account Execs Get Final Class Certification in Overtime Pay Dispute
U.S. District Judge Analisa Torres found that the depositions of opt-in members showed the consistencies needed to certify the class.
September 21, 2018 at 03:18 PM
4 minute read
A group of AT&T account executives in New York and New Jersey suing the telecommunications company for unpaid overtime wages were granted final class certification on their federal and state claims, U.S. District Judge Analisa Torres ruled late Thursday.
The suit in the U.S. District Court for the Southern District of New York initiated in 2013 over allegations the account executives that work with local brick-and-mortar retailers to sell AT&T's wireless services were typically on-call seven days a week, beginning as early as 8 a.m. and extending as late as 10 p.m. While receiving a base salary plus a commission based on sales, the employees were exempt from overtime pay mandated under the Fair Labor Standards Act, as well as local New York and New Jersey laws.
In 2014, the court conditionally certified the collective action of current and former retail account executives that were eligible from 2010 onward. A group of RAEs, joined as well by national retail account executives, who collectively work with nearly 16,000 local dealers and retail locations, opted in after conditional certification.
Following depositions of the opt-in plaintiffs, the parties moved for certification and, in AT&T's case, decertification on the federal claims, while the other side sought additional certification of state claims.
Pointing to the information gleaned from the testimony of the opt-in plaintiffs, Torres found the claimants to be similarly situated. AT&T argued specifically that the potential class members had varying levels of independence and discretion about parts of their jobs that provided enough distinctions to frustrate the class.
AT&T claimed the account executives had wide latitude in how they handled scheduling and supervision of store visits. As was the case in other claims by the company, Torres found that the testimony of the employees suggested their experiences generally had more in common than not. While they said they had some authority over visits, managers were actively involved in the process, monitoring and overseeing the visits, while having the authority to alter schedules.
Similarly, while the employees had discretion in how they conducted trainings with their accounts, they almost always used materials from AT&T that they modified based on the circumstances. When it came to the use of marketing techniques, like in-store promotions, Torres found the differences to be “minimal and immaterial.” Business plans as well were submitted with generally similar frequencies, and included the same kinds of information.
On the issue of on-call times, AT&T argued the variability in the number of calls the employees were subjected to, from a few a week to everyday, showed a disparate set of experiences. Torres stated that the company was confusing variability in the number of calls with variability in their individual experiences, which were substantially similar.
Torres went on to also certify the state claims, noting that courts in the circuit favor certification of New York classes, if they pass the FLSA tests. As both states' laws have tests that largely mirror the federal counterparts, the court found its previous analysis squared with the New York and New Jersey requirements.
While noting the various class members' jobs are not identical, the distinctions were minor “and concern the degree of supervision exercised over a few discrete job duties that were consistent across the class,” Torres found.
“The distinctions do not, therefore, overwhelm the numerous factual consistencies in class members' job duties and the level of discretion and independent judgment they exercised in performing those duties,” she wrote.
In a statement, AT&T spokesman Marty Richter said the company is reviewing the decision and considering its options.
“We value our employees and we're committed to full compliance with all federal and state laws, including wage and hour laws,” Richter said. “… [W]e look forward to presenting our case on the merits at the appropriate time.”
Mandelbaum Salsburg member Michael Saffer represented the plaintiff side of the proceedings. He said he and his clients were pleased with the judge's decision.
“We feel these class members should have their day in court and have an opportunity to present the evidence for which they're seeking monetary damages,” Saffer said.
AT&T's representation was led by Paul Hastings partner Patrick Shea. He did not return a request for comment.
Related:
Epic Decision by Supreme Court Orders Arbitration, Prohibits Class Action
Justices, Divided, Say Employment Contracts Banning Class Actions Are Lawful
Employment Arbitration: A Practical Assessment of Advantages and Disadvantages
This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.
To view this content, please continue to their sites.
Not a Lexis Subscriber?
Subscribe Now
Not a Bloomberg Law Subscriber?
Subscribe Now
NOT FOR REPRINT
© 2025 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.
You Might Like
View AllBankruptcy Judge Clears Path for Recovery in High-Profile Crypto Failure
3 minute readUS Judge Dismisses Lawsuit Brought Under NYC Gender Violence Law, Ruling Claims Barred Under State Measure
In Resolved Lawsuit, Jim Walden Alleged 'Retaliatory' Silencing by X of His Personal Social Media Account
'Where Were the Lawyers?' Judge Blocks Trump's Birthright Citizenship Order
3 minute readTrending Stories
- 1No Two Wildfires Alike: Lawyers Take Different Legal Strategies in California
- 2Poop-Themed Dog Toy OK as Parody, but Still Tarnished Jack Daniel’s Brand, Court Says
- 3Meet the New President of NY's Association of Trial Court Jurists
- 4Lawyers' Phones Are Ringing: What Should Employers Do If ICE Raids Their Business?
- 5Freshfields Hires Ex-SEC Corporate Finance Director in Silicon Valley
Who Got The Work
J. Brugh Lower of Gibbons has entered an appearance for industrial equipment supplier Devco Corporation in a pending trademark infringement lawsuit. The suit, accusing the defendant of selling knock-off Graco products, was filed Dec. 18 in New Jersey District Court by Rivkin Radler on behalf of Graco Inc. and Graco Minnesota. The case, assigned to U.S. District Judge Zahid N. Quraishi, is 3:24-cv-11294, Graco Inc. et al v. Devco Corporation.
Who Got The Work
Rebecca Maller-Stein and Kent A. Yalowitz of Arnold & Porter Kaye Scholer have entered their appearances for Hanaco Venture Capital and its executives, Lior Prosor and David Frankel, in a pending securities lawsuit. The action, filed on Dec. 24 in New York Southern District Court by Zell, Aron & Co. on behalf of Goldeneye Advisors, accuses the defendants of negligently and fraudulently managing the plaintiff's $1 million investment. The case, assigned to U.S. District Judge Vernon S. Broderick, is 1:24-cv-09918, Goldeneye Advisors, LLC v. Hanaco Venture Capital, Ltd. et al.
Who Got The Work
Attorneys from A&O Shearman has stepped in as defense counsel for Toronto-Dominion Bank and other defendants in a pending securities class action. The suit, filed Dec. 11 in New York Southern District Court by Bleichmar Fonti & Auld, accuses the defendants of concealing the bank's 'pervasive' deficiencies in regards to its compliance with the Bank Secrecy Act and the quality of its anti-money laundering controls. The case, assigned to U.S. District Judge Arun Subramanian, is 1:24-cv-09445, Gonzalez v. The Toronto-Dominion Bank et al.
Who Got The Work
Crown Castle International, a Pennsylvania company providing shared communications infrastructure, has turned to Luke D. Wolf of Gordon Rees Scully Mansukhani to fend off a pending breach-of-contract lawsuit. The court action, filed Nov. 25 in Michigan Eastern District Court by Hooper Hathaway PC on behalf of The Town Residences LLC, accuses Crown Castle of failing to transfer approximately $30,000 in utility payments from T-Mobile in breach of a roof-top lease and assignment agreement. The case, assigned to U.S. District Judge Susan K. Declercq, is 2:24-cv-13131, The Town Residences LLC v. T-Mobile US, Inc. et al.
Who Got The Work
Wilfred P. Coronato and Daniel M. Schwartz of McCarter & English have stepped in as defense counsel to Electrolux Home Products Inc. in a pending product liability lawsuit. The court action, filed Nov. 26 in New York Eastern District Court by Poulos Lopiccolo PC and Nagel Rice LLP on behalf of David Stern, alleges that the defendant's refrigerators’ drawers and shelving repeatedly break and fall apart within months after purchase. The case, assigned to U.S. District Judge Joan M. Azrack, is 2:24-cv-08204, Stern v. Electrolux Home Products, Inc.
Featured Firms
Law Offices of Gary Martin Hays & Associates, P.C.
(470) 294-1674
Law Offices of Mark E. Salomone
(857) 444-6468
Smith & Hassler
(713) 739-1250