T-Mobile USA, Inc. has reached a settlement in a class action lawsuit over allegations of labor law violations. The crux of the lawsuit is that T-Mobile had misclassified SMB (Small and Medium-sized Business) Account Executives as exempt employees, depriving them of overtime pay during their initial training period and certain weeks of the Covid-19 pandemic. The alleged misclassification, the lawsuit argues, is a violation of the Fair Labor Standards Act (FLSA), a law that establishes minimum wage, overtime pay eligibility, recordkeeping, and child labor standards. The settlement amounts to $3,650,000 and is intended for individuals who held the position of SMB Account Executive at T-Mobile USA, Inc. during the specified periods. SMB Account Executives are sales professionals tasked with driving new business and growing revenue within T-Mobile's SMB segment. The payout from the settlement will vary depending on the duration of each individual's initial training period and the number of weeks they served in this role during the Covid-19 pandemic. Half of the settlement payment will be subject to payroll taxes and other withholdings, while the other half will be treated as non-wage income, reported on a 1099 form, but without any withholdings. This case shines a spotlight on the broader issue of worker misclassification, which can prevent employees from receiving the employment protections and benefits they're entitled to. Misclassification can lead to wage and hour violations, much like those alleged in this case. This lawsuit underscores the importance of correct employee classification and the need for businesses to strictly adhere to labor laws and standards.