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SpaceX to Pay $3.9M in Settlement for an Unpaid Overtime Lawsuit

By on May 17, 2017
SpaceX

As a matter of fact, the class action lawsuit against Space Exploration Technologies Corp. (SpaceX) is settled. This means that SpaceX will have to pay $3.9 million.

According to the lawsuit, SpaceX violated California labor law. In other words, the company didn’t compensate its non-exempt employees in a proper way for both their usual and overtime work. In addition to that, SpaceX didn’t provide employees with meal and rest breaks as well.
Actually, court documents show that about 3800 class members are going to share in the settlement. Thus, this settlement is ending three lawsuits. It is true that all these suits refer to similar accusations. It was on August 1, when three sets of plaintiffs asked the court for approval of the settlement.

California unpaid overtime law                       

You should know that certain factors impact your eligibility for overtime payment. That’s to say, it depends on whether the employee is exempt or non-exempt. An example of  California overtime law violations is unpaid overtime for working extra hours. It also includes ‘’off-the-clock-work’’, as well as not getting compensation for meal breaks.

Regarding exactly what counts as overtime in California, it’s essential to note that this state has stringent overtime pay laws.  According to the Department of Industrial Relations, a California employer is obliged to provide overtime payment at the rates below ( it refers to both authorized and unauthorized overtime hours):

  • Overtime refers to one and one-half times an employee’ regular rate of pay for hours that the person worked over eight during a workday (over forty hours during a workweek.)
  • Double-time refers to two times an employee’ regular rate of pay for hours that the person worked over twelve hours during a workday (or for hours that an employee worked over eight hours on the seventh day of the workweek.)

So what if you worked for seven consecutive days? In this case, the employer must pay 1.5 times the usual rate for the first eight hours that you worked on the seventh consecutive workday. Furthermore, the employer must pay you double time for the hours that you worked over eight hours on the seventh workday.

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