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IBM to pay $65m to settle overtime lawsuit

Information technology giant IBM on Wednesday said it agreed to pay $65 million to settle a class action lawsuit concerning overtime pay.

DNA Web Team

Updated : Nov 19, 2013, 11:17 PM IST

SAN FRANCISCO: Information technology giant IBM on Wednesday said it agreed to pay $65 million to settle a class action lawsuit concerning overtime pay.

International Business Machines Corp said that litigation "would have been lengthy, burdensome and expensive, and IBM chose to resolve it."

The case, filed in January in the federal district court in San Francisco, focused on current and former IBM employees in the Technical Services Professional" and Information Technology Specialist category.

The dispute was whether those employees, who sometimes worked nights and weekends, were skilled professionals and therefore exempt from extra payment.

The company chose to settle "without admitting any wrongdoing or liability, for a total of $65 million."

IBM said it had established "a provision for the probable settlement of this case in the third quarter of this year," and the company "continues to believe that its payment practices are fair and comply with all applicable laws and regulations."

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