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Catamorphic, operating under the name LaunchDarkly, has struck a $485,000 settlement in a proposed class action that accused the software startup of systematically failing to pay overtime and violating labor laws in Massachusetts and California. A court filing Wednesday outlined the agreement, which still awaits approval from a Suffolk County Superior Court judge.

The claims, brought under the Fair Labor Standards Act as well as state wage laws, stemmed from allegations of what plaintiffs called “widespread, repeated and consistent” violations.

High-Pressure Quotas at the Heart of Claims

The suit was spearheaded by three former sales employees: John Zorski of Boston, along with Paige Logan and Mohammed Shalabi of San Diego. They alleged that Catamorphic forced them into a “high pressure” sales environment where performance metrics and quotas drove employees to work long hours—often more than 40 hours per week—without proper compensation.

The company allegedly failed to require workers to log their hours and did not keep any formal timekeeping records.

Settlement Covers Dozens of Workers

If approved, the settlement will extend beyond the three named plaintiffs to cover 48 additional former business development representatives employed by the company between 2020 and 2024.

Payments will vary depending on length of service, with an average payout of $5,570 per worker, according to the settlement motion.

Company Denied Allegations but Agreed to Mediation

Catamorphic initially denied wrongdoing, arguing that no employee should have been working more than eight hours a day. Still, after mediation last month, the company agreed to settle.

Neither side has yet issued public comment on the resolution.

Legal Teams Steering the Case

The plaintiffs are represented by Sally J. Abrahamson, Anne Kramer, and Douglas Werman of Werman Salas PC. Catamorphic is represented by Richard H. Rahm of Ogletree Deakins Nash Smoak & Stewart PC.