Lawsuit Claims Live Nation Sales Reps Misclassified as Exempt from Overtime Pay

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A proposed collective action alleges Live Nation sales reps have been misclassified as exempt from receiving time-and-a-half overtime wages.

According to the lawsuit, defendants Live Nation Worldwide Inc. and Live Nation Entertainment, Inc. have unlawfully required sales representatives—specifically senior directors, directors, sales managers, sales coordinators or others tasked with selling Live Nation’s products and services while in the office—to put in more than 40 hours per week while wrongfully classifying the workers as exempt from the overtime protections granted to bona fide employees under the federal Fair Labor Standards Act (FLSA).

The case, filed by three former Live Nation sales reps, claims the workers are owed unpaid wages for their overtime hours and liquidated damages.

Live Nation’s sales representatives are responsible for selling, cross-selling and upselling the event promotor’s products and services in exchange for a salary and commission wages, according to the suit. Per the case, the workers’ commission pay does not exceed half of their total compensation.

The lawsuit argues that it is Live Nation’s policy and practice to misclassify sales reps as exempt from receiving overtime wages rather than treat them according to their “true status” as non-exempt employees entitled to time-and-a-half overtime pay. As a result, the workers have been underpaid for every hour worked in excess of 40 each week, the case alleges.

The case further alleges Live Nation has failed to keep accurate payroll records of sales reps’ hours and wages, or “maintain any system to track and record” their actual hours.

The lawsuit looks to represent current and former Live Nation employees who, at any time within the past three years and until the close of the opt-in period, worked as senior directors, directors, sales managers, sales coordinators or in other similar sales rep positions and whose primary duty was to sell, cross-sell or upsell Live Nation’s products and services while at the company’s offices in any state.

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