Judge approves Rocket’s $3.5M settlement over unpaid employee overtime

By Housing News

A
judge
in
Arizona
has
approved
a
$3.5
million
settlement
agreement
between


Rocket
Mortgage

and
current
and
former
employees
who
alleged
in
a
class-action-seeking
lawsuit
that
the
company
did
not
provide
sufficient
overtime
pay,
according
to
court
documents
reviewed
by

HousingWire
.  

U.S.
District
Court
Judge
Douglas
L.
Rayes
mentioned
in
the
decision
that
the
agreement
“was
reached
through
arms-length

negotiations

with
the
assistance
of
a
retired
federal
judge
who
served
as
a
mediator.” In
the
order
published
on
Wednesday,
Rayes
considered
the
settlement
“fair
and
reasonable,”
and
he
dismissed
the
Fair
Labor
Standards
Act
case
with
prejudice.  

Rocket
and
the
plaintiffs’
attorneys
did
not
immediately
respond
to
a
request
for
comment. 

In
January
2023,
employees
sued
the
top-three
U.S.
mortgage
lender
in

Arizona
,
alleging
they
“were
not
paid
one-and-one-half
times
their
regular
rates
of
pay
for
all
time
worked
in
excess
of
40
hours
in
a
given
workweek,”
the
original
complaint
stated. 

In
December
2023,
the
company
sought
to
have
the
case
dismissed
on
jurisdictional
grounds,
but
the
judge
denied
the
company’s
request.  

At
that
time,
the
judge
also
characterized
as
a
class
any
employee
who
worked
for
Rocket
or
its
predecessor,


Quicken
Loans
,
for
more
than
40
hours
in
any
given
workweek
as
a
past
or
present
mortgage
banker
or
similar
title,
or
anyone
who
performed
the
job
duties
of
working
with
borrowers
through

loan
processing
,
court
documents
show.

After
a
mediation
process,
the
parties
reached
an
agreement
that
requires
Rocket
to
pay
$3.5
million
to
class
members.
The
sum
also
covers
attorneys
fees
and
costs,
as
well
as
a
fee
associated
with
settlement
administration
that
could
exceed
$50,000. 

Nearly
30%
of
the
$3.5
million
settlement
will
cover
legal
costs.
Class
members
will
receive
the
remaining
amount,
with
a
minimum
payment
of
$25
per
person.
All
unclaimed
settlement
funds
will
be
returned
to
the
company.  

Rocket
did
not
admit
any
wrongdoing. 

The
company,
which
has
been
under
the
leadership
of

Varun
Krishna
,
a
former
executive
at

Intuit

and

PayPal
,
since
July
2023,
also
recently
entered
into
a

conciliation
agreement

with
the


U.S.
Department
of
Housing
and
Urban
Development

(HUD)
to
resolve
allegations
of
discriminatory
housing
practices.

 

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