Cases & Deals

IBM settles FLSA and ERISA class action involving technical support workers' exempt status

Client(s) International Business Machines Corporation

Jones Day represented International Business Machines ("IBM") in litigating and settling this lawsuit, which was filed in January 2006 on behalf of a putative class consisting of IBM's technical support workers nationwide. The plaintiffs alleged that IBM had misclassified technical support workers as exempt from overtime pay requirements and, as a result, had failed to provide overtime compensation and corresponding benefit credits. The plaintiffs asserted claims under the Fair Labor Standards Act (FLSA), the Employee Retirement Income Security Act of 1974 and the wage laws of 15 states, and sought class certification pursuant to Rule 23 of the Federal Rules of Civil Procedure and collective action treatment pursuant to Section 216(b) of the FLSA. Discovery commenced in April, and formal mediation sessions were conducted in September and October of 2006. The court granted preliminary approval of the settlement in January 2007. The settlement class was limited to certain employees within IBM's Technical Services Professional and IT Specialist job categories. IBM admitted no liability. The final approval hearing was held on July 11, 2007. The Court confirmed final certification and approved the class action settlement.

Rosenburg v. International Business Machines, No. 4: 06-CV-00430-PJH, 2007 WL 2043855 (N.D. Cal. July 12, 2007)