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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.

Osei-Asibey, employed by SmartRent in Georgia since February 2021, and Robinson, who worked in Chicago from 2019 to February 2022, spearheaded the lawsuit. Their primary duties involved managing the installation of SmartRent’s smart home hardware, including doorbells, cameras, locks, sensors, and thermostats.

The court conditionally certified the collective action in March, rejecting SmartRent’s argument that variations in job duties among installation managers disqualified them from being considered similarly situated.

SmartRent $1.5M Deal : Avoiding Further Litigation

The settlement brings to an end a year-and-a-half-long legal battle that both sides described as contentious. According to the filing, the deal eliminates risks tied to ongoing litigation and potential appeals, providing “immediate and substantial benefits” to workers.

“This settlement avoids delay, guarantees recovery in the face of considerable litigation risks and uncertainty, and avoids the uncertainty and expenses of appeals,” the motion stated.

Legal Representation

The plaintiffs are represented by attorneys Beth A. Moeller and Tracey T. Barbaree of Moeller Barbaree LLP. SmartRent is represented by F. Nicholas Chandler, Leigh Shapiro, and Brett E. Coburn of Alston & Bird LLP.

About SmartRent

Headquartered in Scottsdale, Arizona, SmartRent specializes in smart home technology, offering products such as locks, thermostats, cameras, and sensors. The company partners with residential properties to implement advanced smart home systems.

Representatives for both parties have not yet commented on the settlement.