$1.2 Million Settlement Resolves Betacom Wage and Hour Allegations
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A recent class action settlement against telecommunications companies Betacom Holdings Inc. and Betacom Inc. brings closure to a multi-year wage and hour dispute involving more than 600 field employees. The lawsuit claimed Betacom failed to pay overtime wages in compliance with state and federal labor laws. The companies have now agreed to a $1.2 million settlement that resolves those allegations without admitting liability.
Case: Lmar Lay v. Betacom Holdings, Inc. and Betacom Incorporated
Court: United States District Court for the Western District of Washington at Seattle
Case No.: 2:24-cv-01195
The Plaintiff: Lmar Lay
Lmar Lay, a former field employee, brought the lawsuit on behalf of a proposed class of Betacom field workers who were allegedly denied full overtime pay. The complaint claimed that Betacom required field employees to work long hours—including through unpaid meal periods—without properly compensating them for overtime. Lay alleged that the company failed to include certain earnings and bonuses in employees’ “regular rate of pay,” resulting in lower overtime rates than the law allows. The lawsuit also alleged violations of both federal and state labor laws.
The Defendants: Betacom Holdings, Inc. and Betacom Incorporated
The defendants in the case are Betacom Holdings Inc. and Betacom Inc., telecommunications infrastructure companies providing construction, installation, and maintenance for major wireless network towers. The lawsuit centered on allegations that Betacom’s field employees, who perform demanding on-site technical and maintenance work, were improperly compensated for overtime hours worked. Betacom denied all wrongdoing, but in order to avoid further litigation, the company did agree to settle. The class includes Betacom employees (for either defendant) between August 6, 2021 through August 8, 2025.
A History of the Case: Overtime Claims and Settlement Approval
After extensive negotiations, the parties reached a $1.2 million settlement to resolve the wage and hour claims. According to the settlement agreement, Betacom’s payroll records identified 617 eligible class members who may claim payments.
The total settlement fund covers:
Settlement administration costs: Up to $15,000
Attorneys’ fees: $480,000
Attorneys’ expenses: Up to $19,000
Service award to lead plaintiff: Up to $10,000
Net settlement available to class members: Approximately $676,000
Each class member’s share will be determined pro rata, based on the number of overtime workweeks and their individual pay rate. On average, payouts are expected to range between several hundred and several thousand dollars.
Under the agreement, half of each payment will be treated as W-2 wages (subject to payroll taxes) and half as 1099 income. Eligible employees must file a claim with the settlement administrator by December 17, 2025, to receive payment. Uncashed checks after 120 days will be turned over to the Washington Unclaimed Property Fund. The settlement resolves all claims under federal and state wage laws (including the Fair Labor Standards Act (FLSA) and the Massachusetts Wage Act). It also provides Betacom with a full release moving forward.
The Main Question Being Considered: Were Overtime Hours Fully Compensated?
At the heart of Lay v. Betacom was a common problem in wage and hour litigation—whether field employees were fully paid for all hours worked, including time spent working through meal periods or performing tasks outside scheduled shifts. Federal and state laws require overtime pay for all hours worked over 40 in a week (and daily overtime in some states) at 1.5 times the employee’s regular rate of pay. Employers must also include bonuses, incentives, and other forms of pay when calculating that rate.
According to the lawsuit, Betacom's pay practices under-reported employee overtime hours and excluded some forms of compensation from the calculation used to determine the employee's "standard rate of pay", which both reduced the employees' total wage payment. Betacom denied these allegations, but in agreeing to the settlement, will provide direct compensation for affected workers and reaffirms the importance of accurate timekeeping and wage calculations going forward.
Why This Case Matters to California and Washington Workers
Although the Lay v. Betacom case was filed in Washington, its implications extend across state lines. Both Washington and California impose strict wage and hour standards designed to protect employees from unpaid overtime and off-the-clock work. Field technicians, installers, and other employees who travel or work irregular hours are especially vulnerable to wage errors when companies rely on automated time systems or classify meal breaks as unpaid; even when work continues during those periods. This settlement reinforces that overtime compliance is not optional. Employers must track all hours worked, compensate for all required overtime, and ensure pay rates reflect every form of compensation earned.
FAQ: Lay v. Betacom Holdings, Inc. and Betacom Incorporated
Q: What laws were at issue in this case?
A: The lawsuit alleged violations of the Fair Labor Standards Act (FLSA) and applicable state wage laws, claiming Betacom failed to pay employees for all overtime hours worked and miscalculated overtime rates.
Q: Who is included in the class settlement?
A: The class covers 617 field employees who worked for Betacom Holdings Inc. or Betacom Inc. between August 6, 2021, and August 8, 2025.
Q: How much will Betacome employees with eligible wage and hour claims get from the settlement?
A: The total settlement in the case is $1.2 million, with approximately $676,000 allocated to class members after fees and costs. Average payments are expected to be around $1,000–$5,000 per class member. The exact amount depends on each person’s overtime hours and pay rate.
Q: What is the deadline to file a claim?
A: Eligible employees must submit a claim by December 17, 2025. Claims can be filed online or by mail through the settlement administrator, CPT Group Inc.
If your employer fails to provide accurate overtime pay or properly include all forms of compensation in your pay calculations, Blumenthal Nordrehaug Bhowmik DeBlouw LLP can help. Contact our experienced employment law attorneys at our offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, or Chicago today to schedule a free consultation and learn more about how labor laws protect your rights on the job.
