A proposed class and collective action complaint alleges defendants CashCall, Inc. and LoanMe, Inc. violated the Fair Labor Standards Act (FLSA) and California laws by failing to pay individuals employed as loan counselors proper overtime wages. Loan counselors, the lawsuit says, are tasked with collecting outstanding debts from individuals who have loans with the defendants. The case claims the defendants paid loan counselors non-discretionary raises based on hitting certain collection goals, as well as “other forms of pay” not excludable under state and federal law when calculating employees’ overtime rates. Despite compensating loan counselors with incentive pay, the defendants allegedly failed to properly calculate proposed class/collective members’ regular rates of pay, which thereby resulted in the workers being underpaid for all hours worked over 40 in a week.
The case later alleges the defendants failed to authorize and permit certain employees to take third rest periods while working shifts that exceeded 10 hours.
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