Oracle America Inc. has agreed to pay $15.5 million to resolve allegations that it violated California labour laws in its sales compensation practices, according to a proposed settlement filed in San Mateo Superior Court.
The settlement stems from a lawsuit filed under California’s Private Attorneys General Act (PAGA) on behalf of more than 5,000 current and former sales employees in the state. The case, Abrishamcar v. Oracle, was launched in 2015 by two former Oracle sales employees and alleges that the company’s commission policies from fiscal years 2015 to 2018 failed to comply with the state’s labour code.
Oracle denies any wrongdoing and maintains that its compensation practices and agreements were lawful.
If approved by the court, the agreement would provide PAGA penalty payments to thousands of eligible employees and include allocations for the California Labor Workforce and Development Agency, legal fees, administrative expenses, and service awards to the two named plaintiffs.
The parties have named Atticus Administration LLC to oversee the distribution of the funds. Each eligible employee will receive a PAGA settlement notice and corresponding payment once the court grants final approval.
Nearly a decade of litigation
“This settlement is a testament to the dedication of our clients who have invested years of their lives to achieving this outcome,” said Xinying Valerian, managing partner of Valerian Law.
Laura Ho of Dardarian Ho Kan & Lee said the settlement reflected “the importance of these two former employees stepping forward and seeking to enforce California’s labor laws.”
Michael Palmer, co-managing partner at Sanford Heisler Sharp McKnight, called the resolution “a conclusion to nearly a decade of litigation.”
Background of the case
Filed in 2015, the lawsuit alleged that Oracle’s variable commission structures and practices during the relevant fiscal years led to unpaid or underpaid wages in violation of state labour regulations. Under PAGA, employees can sue on behalf of the state and share in penalties recovered from employers who breach the labour code.
The plaintiffs were represented by lawyers from three firms: Sanford Heisler Sharp McKnight; Valerian Law, P.C.; and Dardarian Ho Kan & Lee.
The proposed settlement comes amid ongoing legal scrutiny of sales compensation policies in the tech sector, an area where commission plans can be complex and often opaque.
About the law firms
The legal teams involved are known for litigating complex employment and civil rights cases. Sanford Heisler Sharp McKnight operates nationally with a focus on employment discrimination, wage and hour disputes, and whistleblower actions. Valerian Law specializes in employment and civil rights law, with an emphasis on advocating for workers affected by discrimination and wage theft. Dardarian Ho Kan & Lee, active since 1972, is a national plaintiffs’ firm with a history of class action litigation related to workers’ rights and social justice.
