IBM settles overtime dispute for £35m

IBM has been forced to pay out overtime to a number of employees following a class action lawsuit brought by employees.

IBM has been forced to pay out overtime to a number of employees following a class action lawsuit brought by employees.

The class action was filed in a Californian court in January this year, and the company has chosen to settle out of court at a cost of $65m (£35m).

The case focused on certain current and former IBM employees working under IBM’s “technical services professional” and “information technology specialist” job categories.

IBM said litigation of this case would “have been lengthy, burdensome and expensive” and it chose to settle it, without admitting any wrongdoing or liability, for a total of $65m.

Although not admitting any wrongdoing, under the terms of the settlement, each qualified individual in the two job categories will be entitled to apply for a payment, in accordance with an agreed formula, in full and complete settlement of the case.

“IBM continues to believe that its payment practices are fair and comply with all applicable laws and regulations,” said the firm.

Comment on this article: computer.weekly@rbi.co.uk

 

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