In a dramatic turn of events, Oracle America has agreed to pay a staggering $15.5 million to settle a long-standing legal battle with more than 5,000 current and former sales representatives. The settlement, which comes after nearly a decade of legal wrangling, marks a major step toward resolving a lawsuit filed in California state court. The case, initiated under the Private Attorneys General Act (PAGA), accuses Oracle of illegal wage practices, including delayed commission payments and other labor law violations.
The Origin of the Battle: A Decade of Disputes
The lawsuit, first filed in San Mateo County Superior Court by former Oracle sales representatives Maryam Abrishamcar and Kavi Kapur, has been a protracted battle since 2015. The plaintiffs accused Oracle of violating California labor laws, claiming that the company failed to provide timely signed commission contracts, imposed unlawful deductions from commissions, and forced workers into illegal confidentiality agreements.
The case gained momentum over the years, culminating in a settlement agreement announced on Wednesday. While Oracle agreed to a large sum to end the dispute, the company has denied any wrongdoing, with the settlement stating, “Neither the fact of the agreement nor anything in this agreement is intended or should be construed as an admission by defendant that any of the allegations by the plaintiffs have merit or that defendant has any liability for any claims asserted.”
