Westgate Resorts, Inc.

On October 23, 2019, our law firm, in conjunction with co-counsel, filed a lawsuit against Central Florida Investments, Inc. (“CFI”), Westgate Resorts, Inc. and Westgate Marketing, LLC (collectively, “Westgate”) in the United States District Court for the Eastern District of Tennessee to recover unpaid overtime wages. Westgate, one of the largest privately-owned timeshare companies in the world, develops and sells timeshares throughout the United States.

The worker, a former timeshare sales representative, filed suit on behalf of herself and other timeshare sales reps located throughout the country. In the Complaint, she alleges that Westgate misclassified its timeshare sales reps as “independent contractors,” rather than employees and, in doing so, improperly denied them overtime compensation. The plaintiff alleges she and the other similarly situated sales reps were paid a draw against commissions with no additional pay for the overtime hours they were required to work. The lawsuit seeks unpaid overtime wages and double damages.

Our firm has partnered with D. Alexander Burkhalter, III of The Burkhalter Law Firm, P.C. in Knoxville, Tennessee, and Bryce W. Ashby of Donati Law, PLLC in Memphis, Tennessee to represent the sales reps in this action.

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Am I eligible?

You are eligible to make a claim in this case if you worked for Westgate as a timeshare sales rep anytime between October 23, 2016 to present, in Tennessee, and were not paid an overtime premium for all of your overtime hours worked.

Additional Information

Is This a Class Action? What Does that Mean?

This case is a potential collective action under federal law. The idea behind a collective action is to allow one or more people to sue on behalf of themselves and other people who have similar claims. We will be asking the court to certify this case as a collective action to allow people to proceed as a group with their overtime claims.

Which Locations Are Included?

This case seeks to include all timeshare sales reps that work or have worked for Westgate anywhere across the country within the past three years.

What Time Frame Does This Case Cover?

There is a federal time limit, called a statute of limitations, that allows workers to recover unpaid overtime wages within two years of the worker signing up to join the lawsuit by completing and returning the consent form referenced above. If we can prove that Westgate willfully violated the law, the statute of limitations may be extended to three years.

Do I Have to Pay Anything?

You do not have to pay anything if you join the lawsuit. We are handling this case on a contingency 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.

How Do I Prove I Worked Overtime?

If you have records of the hours you worked, please preserve and keep them until we ask you for them. However, you do not need to have records of your work hours to make a claim for your overtime pay in this case. If Westgate did not keep accurate time records, most courts will permit you to estimate your work hours. Through this lawsuit, we will seek any records the company may have of your hours worked as well.

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 Westgate and you believe you may be the victim of retaliation for joining or participating in this lawsuit, contact the case clerk, Madeline Orozco, at (612) 256-3297 or morozco@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 timeshare sales reps interested in making a claim for unpaid overtime, they should contact the case clerk, Madeline Orozco, at (612) 256-3297 or morozco@nka.com. You can also direct them here to sign up electronically. There is strength in numbers.

How Do I Learn More?

To learn more about this case, feel free to contact the case clerk, Madeline Orozco, at (612) 256-3297 or morozco@nka.com.

Case Updates

October 13, 2021

Westgate Resorts, Inc. Case Update

The parties have reached a settlement and notice of settlement was sent out on September 7^th. We currently await final approval by the Court to declare the settlement as fair and reasonable. If it does so, checks will be sent out afterwards to eligible individuals who received notice of the settlement.

In the meantime, if your contact information has changed recently, please alert the case clerk, Thomas Leicester, with your updated information.
July 31, 2020

Westgate Resorts, Inc. Case Update

We write with good news in the Westgate case. On July 27, 2020 the Court granted our joint stipulation for conditional certification of a Tennessee-only collective group case. Notice will be sent to all individuals who worked at Westgate as an In-House or Dayline Sales Rep at the Smoky Mountain Resort & Spa in Tennessee from October 23, 2016 to present. These individuals will have the opportunity to join the case and assert their wage claims against Westgate.

The notice period will last 60 days. After that, we will enter the discovery phase of the case where both sides exchange information. Please gather any documents you may still possess related to Westgate, as we will be reaching out soon to collect copies. We will continue to update you as the case progresses. As always, please reach out to any of us with questions and continue to update your contact information with the case clerk, Abby Sokolowski.
October 25, 2019

Timeshare Sales Rep Files Collective Action Lawsuit Against Central Florida Investments, Inc., Westgate Resorts, Inc. and Westgate Marketing, LLC

On October 23, 2019, a former timeshare sales representative for Westgate Resorts filed a lawsuit against Central Florida Investments, Inc. (“CFI”), Westgate Resorts, Inc. and Westgate Marketing, LLC (collectively, “Westgate”) in the United States District Court for the Eastern District of Tennessee to recover unpaid overtime wages. Westgate, one of the largest privately-owned timeshare companies in the world, develops and sells timeshares throughout the United States.

The worker filed suit on behalf of herself and other timeshare sales reps located throughout the country. In the Complaint, she alleges that Westgate misclassified its timeshare sales reps as “independent contractors,” rather than employees and, in doing so, improperly denied them overtime compensation. The plaintiff alleges she and the other similarly situated sales reps were paid a draw against commissions with no additional pay for the overtime hours they were required to work. The lawsuit seeks unpaid overtime and double damages.

Plaintiff's attorney Rachhana T. Srey of Nichols Kaster, PLLP explained, “Companies cannot avoid overtime and minimum wage requirements by simply slapping an “independent contractor” label on their workers. When companies control their workers, rather than giving them the independence of being in business for themselves, then the worker is an employee and the company, like other employers, must comply with wage and hour laws.”

Plaintiffs are represented by Rachhana T. Srey and Caroline E. Bressman of Nichols Kaster, PLLP, which has offices in Minneapolis and San Francisco, D. Alexander Burkhalter, III of The Burkhalter Law Firm, P.C. in Knoxville, Tennessee, and Bryce W. Ashby of Donati Law, PLLC in Memphis, Tennessee. The case is entitled, Fredrick v. Central Florida Investments, Inc, Westgate Resorts, Inc., and Westgate Marketing, LLC, Case No. 3:19-cv-00418 (Eastern District of Tennessee).

Additional information about how timeshare sales representatives may make a claim in the case may be found at www.nka.com or by calling Nichols Kaster, PLLP toll free at (877) 448-0492.

Photo by Brett Campbell on Unsplash

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