SmartRent Inc., a smart home technology company, has agreed to a $1.5 million settlement to resolve claims brought by a group of current and former employees alleging they were misclassified as overtime-exempt, according to a recent filing in Georgia federal court.
The dispute, centered on Fair Labor Standards Act (FLSA) violations, was filed by current employee Lynnette Osei-Asibey and former employee Shawon Robinson. The parties jointly requested court approval of the settlement in a motion submitted Friday, describing the deal as a way to avoid prolonged and technically complex litigation.
SmartRent $1.5M Deal : Settlement Details
The settlement covers compensation for 74 workers who joined the suit. Of the total settlement amount:
- $450,000 will go toward attorney fees.
- $10,000 will cover legal costs and expenses.
- $5,000 will be paid to Robinson for releasing all claims against SmartRent, while Osei-Asibey declined a similar release.
The remaining $1 million will be distributed among the plaintiffs. Each participant will receive a minimum of $500, with additional amounts determined by their length of employment during the statute of limitations period, which spans April 2020 to April 2023.
Claims and Allegations
The plaintiffs claimed that SmartRent improperly classified field installation managers as exempt from overtime pay requirements, even though they frequently worked more than 40 hours a week—averaging around 55 hours. They argued that SmartRent failed to keep accurate time records and denied them time-and-a-half compensation for overtime hours.
