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Yelp! squawks, but settles OT suit for $1.25 million

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in Human Resources,Overtime Labor Laws

A settlement has ended a class-action wage-and-hour suit filed on behalf of nearly 1,000 employees at Yelp!, the website that allows consumers to submit reviews of  restaurants, stores and health care professionals.

The executives sued, arguing that Yelp! misclassified sales representatives as exempt and failed to pay them overtime.

The sales reps were paid a base salary, but could earn more based on performance.

The lawsuit alleged violations of the federal Fair Labor Standards Act, the California Labor Code and the California Industrial Welfare Commission Wage Order.

Yelp! agreed to pay up, although it contended in the settlement motion that “the employees’ claims have no merit and a majority of class members, including two of the named plaintiffs, signed releases preventing them from bringing the claims asserted in the filing.”

Three named plaintiffs will receive $5,000 each. The rest of the $1.25 million settlement will cover attorneys’ fees, court costs and California state fines.

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