Service Technicians Win 10 Million Overtime Settlement

After fighting for the compensation that was wrongfully denied them by their employer for the past two years, service technicians employed by Source Refrigeration & HVAC, Inc., are finally victorious. The technicians accused their employer of miscalculating overtime rates and failing to pay them for required work activities. Over 1,000 technicians were involved in the suit against the refrigeration giant, a company with large-scale clients including Wal-Mart Stores Inc., 7-Eleven Inc., and Target Corp.

How the Service Technician Overtime Settlement Unfolded

As part of the settlement, the plaintiffs were awarded $10,000,000. How did this settlement unfold? The following is an overview:

  1. Lead plaintiff Lyle E. Galeener initiated the lawsuit in 2013.
  2. The initial filing alleged that Source Refrigeration had improperly denied service technicians their proper compensation in California, Florida, and Georgia.
  3. In the complaint, Galeener accused Source Refrigeration of utilizing illegal payroll tactics that involved treating the higher hourly pay rates that employees received for working nontraditional shifts as premium overtime pay in order to satisfy the Fair Labor Standard Act’s overtime requirements. These higher pay rates were not overtime, however, they were shift differentials. The difference is that the higher hourly pay rates in these cases was not contingent on other hours worked during the same workweek.
  4. In March of 2015, U.S. District Judge Vince Chhabria gave a preliminary approval to the $10,000,000 settlement.
  5. In August of 2015, final approving was granted, bringing an end to the dispute over whether Source Refrigeration had violated the Fair Labor Standards Act and the California Labor Code. It is important to note that in the order approving the settlement, the court specifically states that the settlement amount is rationally related to the strength of the plaintiffs’ claims, given the risk, expense, complexity, and duration of further litigation.

The plaintiffs were represented in part by Galvin B. Kennedy and Gabriel Asssad of Kennedy Hodges LLP. If you have been denied your rightful compensation, they can help you protect your legal rights, too. For more information about wage or overtime lawsuits, we encourage you to contact us today at (888) 449-2068 for more information.

Total recovery $10,000,000.00

Total fees: $3,000,000

Total Expenses. $192,000