Live Nation Misclassified Sales Representatives to Avoid Overtime Pay, Lawsuit Claims
According to a proposed class action lawsuit, Live Nation sales representatives have been wrongfully designated as exempt from collecting time-and-a-half overtime pay.
Anil Gupta, et al. v. Live Nation Worldwide Inc., et al.
Anil Gupta, Colin Gharrity, and Morgan Katz, all of whom worked as sales representatives for Live Nation, alleging that the company required them to work more than 40 hours per week without compensating them for the overtime hours.
According to the lawsuit, Live Nation’s sales reps are responsible for selling, cross-selling, and upselling the event promoter’s products and services in exchange for a base salary plus commission. In this instance, the commission paid to workers does not surpass half of their overall salary.
In addition, the lawsuit alleges that Live Nation has a policy and practice of misclassifying sales representatives as exempt from overtime pay rather than treating them as non-exempt employees that are entitled to time and a half overtime pay. As a result, the case alleges, the workers are underpaid for each hour worked in excess of 40 a week.
Lastly, the lawsuit also claims that Live Nation failed to maintain accurate payroll records for sales representatives’ hours and wages or to maintain any system to track and record their actual hours.
Live Nation’s Violation of the Fair Labor Standards Act
Live Nation Worldwide Inc. and Live Nation Entertainment Inc. have been accused of unlawfully requiring sales representatives to put in more than 40 hours per week while wrongfully classifying the employees as executive employees in violation of the Fair Labor Standards Act (FLSA).
The sales representative positions are:
- Senior Directors
- Sales Managers
- Sales Coordinators, or
- Other workers tasked to sell Live Nation’s goods and services while in the office
The lawsuit wishes to represent current and former Live Nation employees who, at any time during the previous three years and until the conclusion of the opt-in window, worked as what is stated above or in other comparable sales representative positions and whose primary responsibility was to sell, cross-sell, or upsell Live Nation’s goods and services while at the company’s offices in any state.
The plaintiffs seek a jury trial and are claiming unpaid pay, including all overtime compensation, on behalf of them and all other members of the class.
In 2016, a class action lawsuit was launched against Live Nation for allegedly advertising tickets to a concert at a lower price compared to what they were really selling them for.
Editor’s Note on Live Nation Overtime Class Action Lawsuit:
This article is written to inform you of the class action lawsuit filed against Live Nation over allegedly misclassifying its sales representatives to avoid paying overtime pay. A similar lawsuit was also recently settled by DoorDash and its delivery drivers for $100 million.
Case Name & No.: Anil Gupta, et al. v. Live Nation Worldwide Inc., et al., Case No. 2:21-cv-07081
Jurisdiction: U.S. District Court for the Central District of California
Products/Services: Overtime pay/FLSA
Allegations: Live Nation allegedly misclassifies its sales representatives as exempt from overtime pay
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