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Employment

Evolve Mortgage Services, LLC

Medina et al. v. Evolve Mortgage Services, LLC
Federal, Case No. 8:21-cv-01338 (C.D. Cal.)

On August 13, 2021, we filed a putative class and collective action against Evolve Mortgage Services, LLC (“Evolve”).  According to the Complaint, Evolve improperly calculated non-exempt employees’ regular rate of pay, and therefore failed to pay proper overtime compensation.  Specifically, Defendant paid the plaintiff a per file production payment in the form of a commission, but failed to take those commission payments into account when calculating Plaintiff’s regular rate. 

The complaint alleges Evolve paid overtime compensation to the plaintiff and all others similarly situated, based only on their base hourly rates, without calculating the regular rate based on all non-discretionary incentive pay.  This resulted in an artificially low overtime rate of pay when employees worked overtime hours.  The Complaint further alleges that in instances when Evolve paid California-based employees a premium for missed meal periods (required under California law), it violated state law by failing to include commission and/or incentive earnings in the regular rate for purposes of calculating those premiums.

The lawsuit is filed as a putative collective action under the federal Fair Labor Standards Act and a class action under California state law. The collective action seeks to recover unpaid overtime compensation for all persons who Evolve employed as non-exempt employees eligible for commission or other non-discretionary incentive pay within the United States over a three-year statutory period, and seeks an award of liquidated (double) damages. The class action seeks to recover unpaid overtime compensation for similarly situated employees in California going back four years.

Type of Case

Improper Calculation of Overtime Pay

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Am I eligible?

Because this lawsuit arises under both federal and state law, you may have a qualifying state law claim, federal law claim, or both federal and state law claims.

Do I Have a Qualifying Federal Law Claim?

You may be eligible to make a claim in this case under federal law if you worked for Evolve as a non-exempt employee, eligible for commission or other non-discretionary incentive pay at any time within the past three years, in any state, and worked over 40 hours per week (on at least one occasion).

Do I Have a Qualifying State Law Claim?

You may have a claim under California state law if you worked for Evolve as a non-exempt employee, eligible for commission or other non-discretionary incentive pay at any time within the past four years, in California, and worked over 40 hours per week, worked over 8 hours in a day, or received premium pay for a missed meal period (on at least one occasion).

Additional Information

Is This a Class Action? What Does that Mean?

This case is both a potential collective action under federal law and a potential class action under California state law. This means that, depending on the type of claim you have, there may be a slightly different process for joining and participating in this suit. See below for more details on this process.

Although the process and terminology may differ slightly, the idea behind both a class and collective action is the same: it allows one or more people to sue on behalf of themselves and other similarly situated people who have similar claims. In order to proceed as a group, though, the Court must certify the class and collective. Because we are in the early stages of the case, this has not happened yet, but we intend to seek the company’s agreement or file the motions at the appropriate times asking the Court to grant these certifications.

Which Locations Are Included?

This case seeks to include all non-exempt employees eligible for commission or other non-discretionary incentive pay that work or have worked for Evolve anywhere across the country within the past three years (and four years if in California). 

How Do I Join This Case?

In order make a claim in this case for your unpaid overtime under the FLSA, the federal law, you must complete a consent form and submit it to our office. You can sign up electronically by clicking here.

What Time Frame Does This Case Cover?

Each type of federal and state law claim has what is called a statute of limitations, which allows workers to recover unpaid overtime wages within specific time periods.  Under federal law, the statute of limitations is two years back from when the worker signs up to join the lawsuit by completing and returning the written consent form referenced above. If we can prove that Evolve willfully or recklessly violated the law, then the statute of limitations may be extended to three years.

The law provides for recovery for up to four years from the date the lawsuit was filed for certain California state law claims.

Do I Have to Pay Anything?

You do not have to pay anything if you join to recover your pay. We are handling this case on a contingency fee basis. This means we will only be paid if the lawsuit is successful in obtaining relief either through a settlement, award, or a final judgment, and that payment will only come out of that settlement, award, or final judgment.

What About Retaliation?

It is against the law for an employer to retaliate against a person for joining a lawsuit to reclaim unpaid wages. If you currently work for Evolve and you believe you may be the victim of retaliation for joining or participating in this lawsuit, contact the case clerk, Thomas Leicester, at (612) 256-3259 or tleicester@nka.com immediately.

How Long Will This Case Take?

The length of this kind of lawsuit varies from case to case, but they typically last one to three years.

Is There Money Available Now?

No. This is a pending lawsuit. There is no money currently available and there is no guarantee that you will receive money for joining the lawsuit.

How Can I Help?

If you know any mortgage underwriters or other non-exempt employees interested in making a claim for unpaid overtime, they should sign up electronically by clicking here. They may also contact the case clerk, Thomas Leicester, at (612) 256-3259 or tleicester@nka.com to sign up. There is strength in numbers. 

How Do I Learn More?

To learn more about this case, feel free to contact the case clerk, Thomas Leicester, at (612) 256-3259 or tleicester@nka.com. Keep an eye on the update section of this website as well.

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