Sarah M. Block
Tue, 10/31/2023
On October 19, 2023, the U.S. District Court for the Southern District of New York approved as final a $4.25 million class action settlement in the case of Heckle v. Matrix Absence Management, Inc., Case No. 7:21-cv-1463. Plaintiff Erica Heckle and the Class of 203 Disability Benefits Claims Examiners who worked in Matrix’s Hawthorne, NY office were represented by MSE attorneys Molly A. Elkin and Sarah M. Block.
Matrix is a third-party administrator that processes disability and leave of absence claims for its customers. Its customers are companies that offer disability and leave of absence insurance to their employees. Plaintiff and other TCEs are the workers who process short-term disability and leave of absence claims in accordance with Matrix’s policies and procedures and the criteria set forth in the applicable disability insurance policy.
Plaintiff Heckle alleged that she and other Disability Benefits Claims Examiners who worked in the company’s Hawthorne, NY office (whether in person or remotely) were unlawfully denied overtime compensation as a result of Matrix’s misclassification of their positions as exempt from the overtime requirements of the New York Labor Law. Ms. Heckle also asserted individual claims for overtime compensation under the federal Fair Labor Standards Act. In December 2022, the Court certified the case as a class action. Thereafter, the parties entered mediation, and worked together to reach an agreement to settle the claims of the Class for $4,281,000. No Class Member opted out or submitted an objection to the settlement, resulting in 100% participation. In approving the settlement as final, the Court agreed—in part based on the outstanding response from the Class—that the settlement was fair and reasonable. Under the settlement, payments will be made to Class Members in December 2023.
Molly Elkin, lead Class Counsel, stated, “While class certification was hard-fought, once the Court conducted its rigorous analysis and certified the class, the parties worked together to reach a settlement that resolves all class claims and puts real money in the hands of workers who make a modest salary. On average, each of the 203 class members will receive $14,000.00 per person after all fees, expenses, service awards, and administration costs are paid. We look forward to our clients cashing their checks later this year.”
Unfortunately, misclassification is all too common as employers attempt to circumvent the law and avoid paying workers the overtime wages they deserve. If you believe you have been wrongfully denied overtime, including because you believe you have been wrongfully misclassified as exempt from coverage by federal or state overtime laws, reach out to MSE today through our website to schedule a free consultation with our experienced wage and hour attorneys.
