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Netflix Faces Unpaid Overtime Class Action


Despite Netflix’s extremely unpopular decision last year to raise the price of its DVD/streaming package, a former employee is alleging that the company has already been unfairly garnering money by refusing to pay its employees all of their earned wages.

The Plaintiff, Brunella Gaggero, worked for Netflix as an hourly non-exempt employee from November 2008 to September 2010. She is seeking certification of a class of hourly non-exempt employees of Netflix in the state of California who allegedly worked overtime for which they were not paid and/or allegedly were not compensated for un-provided breaks. Because Netflix has more than 100 hourly non-exempt employees, when employee turnover is accounted for, the class could potentially consist of significantly more members.

Ms. Gaggero alleges that she and her fellow hourly non-exempt employees were allegedly regularly required to attend mandatory meetings off the clock which allegedly resulted in them working more than 8 hours a day and 40 hours a week without receiving the required time-and-a-half compensation (one and a half times the employee’s regular hourly wage for each hour of overtime worked) for those overtime hours. She also alleges that employees were not provided the obligatory rest break of at least ten minutes for every four hours worked. If an employee is not able or allowed to take this rest break then the employer is required to pay them one hour of their regular wage for each day that these breaks are not taken and Netflix allegedly failed to pay this compensation. Additionally, Netflix allegedly failed to provide the required minimum 30-minute meal break for every five hours worked in a day, or the requisite compensation of one hour of regular wages for each day that the meal break is not taken.

Ms. Gaggero also alleges that, upon an employee’s termination or resignation from Netflix’s employment, Netflix failed to timely pay wages due to the employees. According to California employment law, an employer has 72 hours upon an employee’s termination of employment to pay all earned wages to the employee. If the employer fails to pay these wages in a timely manner, then they must continue to pay the employee’s wages until all of the back wages have been paid, up to 30 days. It has now been more than 30 days since the termination of Ms. Gaggero and a substantial number of the potential members of the class and they still, allegedly, have yet to receive their due wages from Netflix.

Ms. Gaggero is also alleging that Netflix failed to maintain accurate records of how many hours each employee worked and what they were paid. Because of this alleged failure it is difficult to determine the exact amount of unpaid wages due to each employee. However, according to California employment law, each class member could be entitled to up to $4,000 as restitution for this error.

In addition to this restitution, Ms. Gaggero is seeking certification of the class, unpaid regular and overtime wages, plus interest and penalties thereon, reasonable attorneys’ fees and costs. She is also seeking an injunction against Netflix which would prevent it from ever again participating in these illegal and unfair business practices.

The attorneys at Chicago Overtime Law Center have decades of experience litigating wage and hour cases including overtime, vacation pay, meal breaks, and tips. Our offices are conveniently located in Oak Brook Terrace and Chicago, Illinois. Contact a Deerfield wage and hour attorney today at 312-869-4095 or fill out our online form.