Department of Labor Approves Zillow Real Estate Class Action Settlement

Class Actions
Overtime Pay

By Zac Pingle, Staff Writer

On December 5, 2016, the Seattle-based real estate company Zillow settled a class action lawsuit regarding employee rights, according to a Form K-8 filed with the US Securities and Exchange Commission.

The case, titled Ian Freeman v. Zillow, Inc., included allegations that “Zillow failed to provide meal and rest breaks, failed to pay overtime, and failed to keep accurate records of employees’ hours worked, in compliance with the Fair Labor Standards Act (FLSA) and California law with respect to certain inside sales consultants,” according to the lawsuit. Nearly 120 Zillow sales consultants in California were involved with the lawsuit, which was classified as a class action in February. The case was settled in the US District Court of the Central District of California.

The settlement was approved by the Wage and Hour Division of the DOL which monitored Zillow’s compliance with wage and hour laws in California and Washington offices between 2013 and 2015, according to the Securities and Exchange Commission. The settlement requires Zillow to make a payment of $6 million to the plaintiffs and create procedures to “promote future compliance with the FLSA.”

However, Zillow has a history of employee-related lawsuits. In December, 2014, a Zillow employee filed sexual harassment charges against the company. The lawsuit claims that Zillow supervisors subjected Rachel Kremer to “the most heinous acts of sexual harassment imaginable” which involved ranking her according to breast size, sending her inappropriate sexual photos, and demanding sexual gratification. In response, Zillow claimed that it terminated a sales employee and “does not tolerate harassment of any kind,” according to HousingWire.

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