LoJack to Pay $8.1M to Settle California Class Action Wage and Hour Lawsuits

November 2, 2012

Last month, LoJack Corporation, the maker of tracking systems for vehicles, agreed to pay around $8.1 million, to end the remaining California class action wage and hour lawsuits that have been following the company since 2006.

The class action wage and hour lawsuits reportedly accused LoJack of violating federal and California state employment laws by failing to provide overtime compensation and rest and meal breaks--which as Vincent Howard reported in a previous Irvine, California employment lawyers blog, is against the law. According to federal and state employment laws, employees must be paid at least the state and federal minimum wage for every hour worked in a forty hour workweek, plus overtime payment when working beyond forty hours.

According to the lawsuits, the technicians and senior technicians were responsible for selling and installing wireless tracking and recovering systems in customers' cars, so that if any vehicles were stolen, the system could track and recover the stolen vehicle. The technicians, who are paid by the hour, claim that LoJack failed to compensate them for all hours worked under the federal Fair Labor Standards Act (FLSA) and California state law.

The plaintiffs also claimed that that they were expected to repair and maintain the company's vehicles when they were working shifts out of their own time and money, with no compensation.

Last year, in the related California federal class action wage and hour lawsuit, LoJack paid the plaintiffs around $115,000 to settle the federal claims. In early August of this year, the federal court reportedly awarded the plaintiffs with $900,518 in attorneys' fees and costs related to the claims.

According to the wage and hour lawsuit settlement agreement decided this month, that Vincent Howard has been closely watching, LoJack has agreed to pay up to $8.1 million including the plaintiffs' attorneys' costs and fees to resolve all remaining California class action lawsuit claims--awaiting approval from the Superior Court of California of Los Angeles County. The company reportedly previously disclosed that the estimated range of possible monetary loss in regard to the California State lawsuit case could have been between $970,000 to $30 million.

The lawsuit settlement reportedly involves no admission of any liability, wrongdoing or law violation by the company. The agreement also bars the plaintiffs from ever pursuing any further legal action against the company in the future.

Contact Howard Law, PC and attorney Vincent Howard for questions about your wage and hour issue in Riverside, Santa Ana, and Costa Mesa, California.

LoJack Corp. agrees to pay up to $8.1M to settle two class-action suits, Boston Business Journal, October 18, 2012

LoJack Corporation Announces Settlement Agreement In California Class Action Litigations, PR Newswire, October 18, 2012

Related Web Resources:

U.S. Department of Labor: Wage and Hour Division (WHD), Fair Labor Standards Act (FLSA)

Department of Labor (DOL): Wage and Hour Division (WHD)

California Department of Industrial Relations, (DIR)

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DOL Continues to Track Down Federal Wage and Hour Law Violations in the Workplace, California Employment Lawyers Blog, September 8, 2011

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