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Class Action Defense Cases-IBM Defense Attorneys Seeks Court Approval Of $65 Million Settlement In Federal Fair Labor Standards Act (FLSA) Overtime Class Action

The Los Angeles Times reports that IBM has reached a tentative agreement to pay $65 million in settlement of a class action lawsuit filed in California federal court that alleged it had improperly denied overtime pay to 32,000 workers. According to the article, “The case involved workers classified as ‘technical services professional and information technology specialists.’ IBM considered them professionals exempt from overtime laws detailed in the Fair Labor Standards Act and state labor laws.” Plaintiff’s lawyer argued that the employees at issue “were by no means the decision makers or creative types typically ineligible for overtime.” IBM maintains that it seeks settlement of the lawsuit because litigation will be “lengthy, burdensome and expensive.”

The article, entitled “IBM settles overtime class action,” may be found in the Business Section of the November 23, 2006 Los Angeles Times.