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ZipRecruiter “Exempt” Employees Overtime Pay FLSA Collective Action

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An “exempt” employee is one who does not have to be paid overtime. The complaint for this class action alleges that ZipRecruiter, Inc. and those who owned the company misclassified certain employees as exempt and did not pay them overtime as they were required to do by the federal Fair Labor Standards Act (FLSA). 

The FLSA Collective Members for this action is all current and former account managers who worked for ZipRecruiter and its owners at any time between Februrary 11, 2016 and the present.

ZipRecruiter helps companies fill their recruitment needs through job board advertising and other career recruitment tools. 

Plaintiff Oscar Alvarado worked for ZipRecruiter as an account manager, from around December 2017 through December 2018. In that job, he was classified as exempt and not paid for any overtime hours he worked. 

However, the complaint alleges that he was required to perform non-exempt duties. These included cold-calling and e-mailing companies that were customers and those who might become customers, in order to try to convince them to use ZipRecruiter’s services. The complaint says that Alvarado “performed … straightforward inside sales tasks.” The complaint contends that he was really thus a non-exempt employee. 

He was paid a base salary and commissions based on sales performance. Yet the complaint says that the company and its owners “regularly and consistently reduced” his pay “because of variations in quantity” of his work.

Alvarado says he and other similar employees of the company worked from five to twenty-five hours of overtime each week but were not paid for that with the required time-and-a-half overtime pay. 

In addition, the complaint says that Alvarado and other employees were and are required to be constantly available by phone and e-mail and to respond immediately to customers’ needs. The company also “sets challenging sales quotas, enforces them harshly, and fosters an intensely competitive culture.” 

These factors, the complaint alleges, push the employees to do overtime and often lead them to skip or work through lunch.

The company also requires the account managers to put in at least forty hours per week at its offices. This is in addition to any hours they put in at home. The complaint says that account managers work many hours in the mornings and evenings and on weekends.

The complaint claims that Alvarado and other supposedly exempt employees did not meet the criteria for exemption in the FLSA. For example, their primary duties were not managing their parts of the enterprise, and they did not direct the work of two or more other employees.

For that reason, the complaint alleges that the employees were misclassified and are owed back overtime pay, interest, and damages.

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