Labor & Employment

Calif. Seeks $17M in Back Wages, OT and Penalties from ZipRealty re Alleged Misclassified Workers

In the largest such enforcement action in California history, the state labor commissioner has filed suit seeking $17 million in back wages, overtime pay and penalities from ZipRealty on behalf of hundreds of agents.

The company has contended that it was not required to pay minimum wage to outside salespeople. However, a Kern County Superior Court judge held in a similar case earlier this month that such workers are employees, because they spent more than half their time in the office, explains the Money & Company blog of the Los Angeles Times.

The judge quadrupled the damages sought by the misclassified plaintiffs in the Kern County case, awarding them $330,000, reports the San Francisco Business Times.

The new Alameda County Superior Court enforcement action filed by Labor Commissioner Julie Su asks for $7.5 million in minimum-wage payments, $1.3 million in overtime and $9 million in penalties.

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