IBM Corp.

A class action lawsuit has been filed against the computer company alleging unpaid overtime and other benefits to sales representatives. The lawsuit was filed in US District Court for Northern California on behalf of hundreds of sales reps that have been misclassified as exempt from overtime pay. The suit claims International Business Machine (IBM) violated California law by routinely requiring reps to work in excess of eight hours per day and more than 40 hours per week without paying overtime. The company allegedly misclassified workers in similar positions as exempt from overtime and claims workers were denied legally required meal and rest breaks.

An IBM official said in a related deposition that the company currently employs about 800 sales reps in California that have been classified as exempt. In a procedural motion, IBM estimated that the company would be liable for back payments of more than $5 million if it loses the case.

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