Customer service and artificial intelligence software company [24]7.ai has agreed to pay $1.1 million to settle a class action lawsuit alleging nonpayment of overtime and flat wages to its hourly customer service representatives. This agreement will benefit current and former employees of the company who worked between February 15, 2020 and June 15, 2024.
The lawsuit was filed on the premise that [24]7.ai failed to comply with state and federal laws regarding overtime pay, which affected its hourly employees. Although the company did not admit any wrongdoing, it agreed to the settlement to avoid protracted litigation. Affected workers will receive payment based on the weeks they worked during the period covered by the class action lawsuit.
[24]7.ai Class Action Settlement — You Might Qualify for a Payment
Workweek calculations were made from payroll records and other employee documents. This data was used to determine the amount each worker should receive. Members of the affected group should have already received notifications including their workweek totals and pay estimates. The deadline to object or opt out of the agreement is September 19, 2024, while the final approval hearing for the agreement is scheduled for November 14, 2024.
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How Class Action Lawsuits Work in the United States
Class action lawsuits are a type of legal proceeding in which a group of people with similar claims against an entity, such as a company or institution, come together to file a joint lawsuit. This legal mechanism allows individuals, who may not have the resources or incentives to sue on their own, to band together and share the costs and benefits of a single legal action.
The first thing is to identify the affected class group, and subsequently, they must group together to fight in court for a common goal, which is to prove that they are right and obtain economic compensation. This group can be made up of consumers, employees, investors, or any other set of individuals affected by the actions of the defendant entity.
After the lawsuit has been filed, together with the legal representation, we proceed through all the corresponding legal instances, starting with the option of reaching a private agreement, to the option of going to court so that a court can analyze the accusation, the evidence, and defense.
When a settlement is reached in a class action lawsuit, as in the case of [24]7.ai, the court must approve it to ensure that it is fair to all members of the class. Once approved, the process of distributing the funds begins. Generally, class members do not need to take additional steps to receive their compensation unless they choose to dispute the amount awarded or opt out of the settlement.