Zillow employee denounces ‘illegal commission structure’ in lawsuit

An employee of the Zillow Group has filed a class action lawsuit alleging continued violations of the labor code, including non-payment of overtime.

An employee of real estate giant Zillow Group has filed a class action lawsuit against the company, alleging continued labor code violations, including non-payment of overtime and unfair business practices.

Zillow’s business consultant Nicole Correa filed the lawsuit in California Superior Court in Orange County on March 18. She has been with Zillow since October 10, 2016 as a member of the company’s internal sales force. According to the complaint, Zillow’s sales force is made up of sales managers who make the first sales to agents and sales consultants who manage the accounts.

Screenshot of Nicole Correa’s LinkedIn profile

Business consultants earn $ 24.04 an hour and also earn sales commissions, just like business managers. They are assigned a monthly quota and are paid based on the “churn”: how many new business they produce and how much existing business they lose. The complaint alleges that Zillow uses an illegal chargeback policy that eliminates new business income and loss of income in a seller’s accounts – that the seller is personally responsible for the loss and even if there is nothing the seller could do about it. ‘prevent, like when an agent never pays or their credit card is declined.

The lawsuit also alleges that Zillow failed to properly calculate overtime wages, basing them on a salesperson’s hourly rate rather than a combination of hourly rate and commissions, thereby violating minimum wage regulations and extra time.

“Zillow’s conduct of creating an illegal commission structure; his non-payment of the minimum wage for all hours worked; his failure to pay the appropriate overtime rate; its failure to reimburse its employees for necessary expenses; allow its employees to work without providing detailed and accurate salary statements; and failing to keep accurate records directly violate State law, constitute and were intended to constitute unfair competition and illegal and unfair acts and practices within the meaning of the [Unfair Competition Law]Correa’s lawyers wrote in the complaint.

In an emailed statement, a spokesperson for the Zillow Group told Inman, “We are aware of the lawsuit in California Superior Court. While we do not discuss pending litigation, we take any allegations regarding our employee compensation practices seriously. “

The lawsuit aims to represent around 200 to 300 employees who have worked for Zillow as business managers or business consultants over the past four years and were paid under the commission system described in the complaint.

Claims in the lawsuit include illegal deductions from wages, failure to pay minimum wage, failure to pay overtime, failure to provide detailed and accurate salary statements, failure to keep required pay records , non-payment of all compensation due to the landfill, and illegal and / or unfair business practices.

“California employees have the right to receive whatever wages they earn and often, in commission jobs, they are denied compensation for what they do,” said Aashish Desai of the law firm Desai, one of Correa’s lawyers, to Inman in a telephone interview.

“Salespeople are the backbone of many businesses, including Zillow and [Zillow] must strictly follow the law.

He hopes to know by the end of the year whether the lawsuit has been granted class action status.

Send an email to Andrea V. Brambila.

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Romona L. Lopez

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