Payscale $675K SDR Overtime Class Action Lawsuit Settlement, Claims, Eligibility, and Payout Details 2026
If you worked as a Sales Development Representative (SDR) for Payscale, Inc., you may be eligible for a cash payment from a $675,000 class action settlement. As of January 2026, the court has granted preliminary approval to resolve claims that the company failed to pay proper overtime wages and provide mandated rest periods under California labor laws.
The Payscale SDR Settlement: At a Glance
The lawsuit, Cabrera v. Payscale, Inc., alleges that Payscale miscalculated regular rates of pay, resulting in underpaid overtime for its sales staff. The plaintiffs also claimed that the company failed to provide compliant meal and rest breaks or accurate wage statements. While Payscale denies all allegations and maintains it complied with the law, they have agreed to a $675,000 settlement to end the litigation.
Where Is the Official Settlement Website?
The court-appointed administrator for this matter is ILYM Group, Inc. To view court documents or download the Official Settlement Notice and Claim Form, visit: www.PayscaleSettlement.com.
What Is the Deadline to Submit a Claim?
To receive your portion of the settlement fund, you must act before the upcoming deadlines in 2026:
- Claim Submission Deadline: March 2, 2026
- Exclusion (Opt-Out) Deadline: March 2, 2026
- Objection Deadline: March 2, 2026
- Final Approval Hearing: Scheduled for April 2026
Who Is Eligible to File a Claim?
The “Settlement Class” includes all individuals who were employed by Payscale, Inc. as non-exempt Sales Development Representatives (SDRs) or in similar positions within the State of California at any time between September 2019 and January 2026.
What You Must Know About the Payout
This settlement is structured to compensate employees based on the length of their service during the class period. Unlike data breach settlements with flat fees, this labor settlement uses a “Workweek” formula.
How Payouts Are Calculated
The $675,000 Gross Settlement Value will be distributed after court-approved deductions for attorney fees, administrative costs, and PAGA (Private Attorneys General Act) penalties. Your individual share is determined by:
- The total number of workweeks you were employed as an SDR during the class period.
- The total number of workweeks logged by all participating class members.
- Estimated Payout: While amounts vary, some long-term employees may receive several hundred to over one thousand dollars, depending on their specific tenure.
Tax Implications
It is important to note that settlement payments will be split for tax purposes. Usually, one portion is treated as wages (subject to a W-2), while the other portion is treated as penalties and interest (subject to a 1099 form). You should consult a tax professional regarding how this impact your 2026 filings.
Waiving Your Right to Sue
By participating in this settlement, you release Payscale from any future claims regarding overtime, minimum wage, and rest period violations during the covered timeframe. If you wish to pursue an individual lawsuit for higher damages, you must opt out by the March 2, 2026 deadline. You can read more about these choices in our guide on class action settlement procedures.
What to Do Next: Your Action Plan
If you worked for Payscale as an SDR in California, follow these steps to secure your payment.
1. Check Your Mail for the Notice Packet
In January 2026, the settlement administrator mailed personalized notice packets to known employees. This packet includes your “Estimated Individual Settlement Payment” based on Payscale’s records.
2. Verify Your Workweeks
If you believe the number of workweeks listed in your notice is incorrect, you have the right to dispute it. You will need to provide documentation, such as pay stubs or offer letters, to the administrator before the March 2, 2026 deadline.
3. Submit the Claim Form
Ensure you complete and sign the Claim Form. You can mail it to the ILYM Group or check if the portal allows for digital submission. For more information on labor-related claims, visit our section on telemarketing violations which often covers related workplace communication rules.
FAQs About the Payscale Settlement
What if I no longer work at Payscale?
You are still eligible! The settlement covers former employees who worked during the class period (September 2019 – January 2026).
Is my payout guaranteed?
The final amount is subject to the total number of valid claims and the court’s final approval in April 2026.
Can Payscale retaliate against me for claiming?
No. California labor law strictly prohibits employers from retaliating against current or former employees for participating in a wage and hour settlement.
What is PAGA?
The Private Attorneys General Act (PAGA) allows employees to sue for civil penalties on behalf of the State of California. A portion of this $675K settlement is specifically designated for these penalties.
When will the checks be mailed?
Pending final approval and no appeals, checks are typically distributed 60 to 90 days after the April hearing, likely in Summer 2026.
Where can I get more help?
You can contact the settlement administrator through the official website or review the Payscale Settlement Documents for a detailed breakdown of the legal arguments.
Last Updated: January 31, 2026
Disclaimer: This article is for informational purposes only and does not constitute legal advice. AllAboutLawyer.com is an independent news resource.
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About the Author
Sarah Klein, JD, is a licensed attorney and legal content strategist with over 12 years of experience across civil, criminal, family, and regulatory law. At All About Lawyer, she covers a wide range of legal topics — from high-profile lawsuits and courtroom stories to state traffic laws and everyday legal questions — all with a focus on accuracy, clarity, and public understanding.
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