In what seems like a recent trend, yet another couple of debt settlement companies have been hit with a lawsuit for allegedly failing to pay proper wages to employees. The other recent case was against ABC Debt Relief, The Debt Answer and Lloyd Ward & Associates, a law firm.
In this case, Randy Abbe filed suit against Debt RX USA LLC and Silverleaf Debt Solutions.
Here are the allegations from the case.
- Defendants specialize in providing a variety of debt solution products and services, including debt management to a specific group of individuals.
- Defendant Debt RX began selling debt solution products and services in approximately January 2009. In approximately November, 2009, the company changed its name to SilverLeaf Debt Solutions. The company is run in the same manner by the same individuals.
- Plaintiff was employed by Defendants as a sales representative/debt consultant to sell Defendants’ debt services to its clients over the telephone.
- As a sales representative, Plaintiff was responsible for selling Defendants’ debt solution products and services to Defendants’ potential clients from Defendants’ premises. Plaintiff was responsible for other clerical and nondiscretionary duties associated with selling Defendants’ products and processing debt solution applications.
- Plaintiff was not compensated for hours worked in excess of 40 in a workweek. Plaintiff routinely worked in excess of 40 hours per week, but was not paid time-and-one-half his regular rate of pay for those hours. Plaintiff and Class Members were paid on a non-salary basis and were not paid time-and-one-half their regular rates of pay for hours worked in excess of 40 hours in a week.
- Defendants have employed and are employing other individuals as sales representatives who perform(ed) the same job duties under the same pay provision as Plaintiff, in that they are misclassified as “exempt” employees and accordingly denied overtime compensation. Defendants knowingly, willfully, or with reckless disregard carried out their illegal pattern or practice of failing to pay overtime compensation with respect to Plaintiff and the Class Members. – Source
This case was filed on behalf of All current and former sales representatives / debt consultants, regardless of specific job title, of Debt RX and/or SilverLeaf Debt Solutions who were not paid on a salary basis.
The firm handling this case is:
J. DEREK BRAZIEL
Attorney in Charge
Texas Bar No. 00793380
Texas Bar No. 24055180
Lee & Braziel, L.L.P.
1801 N. Lamar Street, Suite 325
Dallas, Texas 75202
(214) 749-1400 phone
(214) 749-1010 fax
Another Debt Settlement Company Sued for Failing to Pay Proper Wages. Debt RX USA, Silverleaf Debt Solutions by Steve Rhode
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