Did Odoo Misclassify Its Sales Representatives? $4.6 Million Settlement Resolves Overtime Allegations

A class action lawsuit against Odoo, Inc., a global business software company, shows how quickly overtime disputes can grow when they affect hundreds of employees across multiple states. In Kayed, Prado, Carr, and Rivas v. Odoo, sales representatives alleged they were improperly classified as exempt from overtime pay. The case has now ended in a $4.6 million settlement, bringing long-awaited relief to nearly 600 workers.

Case: Omar Kayed, Jesus Prado, Spencer Carr, and Alonzo Rivas v. Odoo, Inc.

Court: Northern District Court of California

Case No.: 3:23-cv-03728

The Plaintiffs: Odoo Sales Representatives

Four former Odoo employees—Omar Kayed, Jesus Prado, Spencer Carr, and Alonzo Rivas—filed the original complaint in July 2023, alleging that Odoo had misclassified its sales representatives as exempt from overtime.

The plaintiffs sought to represent a class of employees in California and New York who held titles such as Account Executive, Account Manager, and Customer Success Manager. According to the complaint, these employees primarily engaged in routine sales and customer service duties, including contacting clients, scheduling demos, and closing deals.

Their lawsuit claimed these duties did not meet the criteria for exemption under either federal or state law. The plaintiffs also alleged that Odoo imposed aggressive sales quotas and productivity goals, requiring employees to routinely work more than 40 hours per week without overtime pay.

The Defendant: Odoo, Inc.

Odoo, Inc., the U.S. arm of a global enterprise software company headquartered in Belgium, provides business management solutions to clients worldwide. The plaintiffs accused Odoo of systematically denying overtime pay, failing to provide accurate wage statements, and failing to reimburse California employees for work-related expenses, such as phone and internet costs.

The complaint asserted violations of both the Fair Labor Standards Act (FLSA) and state labor laws, including California’s Labor Code and New York wage and hour statutes. California plaintiffs also pursued civil penalties under the Private Attorneys General Act (PAGA).

What is PAGA? PAGA allows employees to act on behalf of the state to seek penalties for labor law violations.

A History of the Case: From Filing to $4.6 Million Resolution

The class action was filed in the San Francisco federal court in July 2023. The parties' counsel litigated the case for close to two years including extensive discovery and settlement discussions.

On December 12, 2024, Judge Cisneros granted final approval of the $4,647,474.68 settlement to resolve the dispute. Under the agreement, Odoo will provide payments to 599 class members, as well as pay attorneys’ fees, and administrative costs associated with the case.

According to court documents, the average class member payout is approximately $4,850.46, while the highest payment exceeds $24,000. Though Odoo did not admit liability, the settlement represents a meaningful recovery for affected employees who worked long hours under demanding sales targets.

The Main Question Being Considered: Were Odoo’s Sales Reps Exempt or Not?

The main question in the case is if Odoo's sales representatives were correctly classified as exempt or not. Under federal and state labor law, exemptions usually apply to executive, administrative or professional employees whose main job duties require the exercise of discretion and independent judgment regarding significant business matters.

The plaintiffs argued that Odoo’s sales employees were closely supervised, followed standardized scripts, and worked within strict performance metrics—factors that typically characterize non-exempt positions.

Ultimately, while the case ended in settlement rather than trial, the resolution underscores how easily misclassification disputes can expand into multi-state class actions when large groups of employees share similar job structures and claims.

Why Does This Case Matter to California Workers?

California’s wage and hour laws impose some of the nation’s toughest overtime requirements, and they apply even to white-collar professionals in sales and tech. Employers cannot rely solely on job titles or salary levels to deny overtime. The actual day-to-day duties determine exemption status.

This case reinforces that California workers (especially those in high-pressure sales environments) should not assume that “salaried” means “exempt.” If your job requires long hours, detailed oversight, and scripted tasks, you may be entitled to overtime pay even if your employer labels you as a manager or executive.

FAQ: Kayed, Prado, Carr, and Rivas v. Odoo, Inc.

Q: What laws did this case involve?

A: The lawsuit cited violations of the Fair Labor Standards Act (FLSA) and state labor laws in California and New York, including California Labor Code provisions governing overtime pay, accurate wage statements, and reimbursement for business expenses.

Q: What is the value of the settlement?

A: The settlement totals $4,647,474.68, covering payments to 599 class members, with an average payment of about $4,850 and a maximum payment of $24,064.03, subject to court-approved deductions for fees and costs.

Q: What is a PAGA claim?

A: The Private Attorneys General Act (PAGA) allows California employees to act as “private attorneys general” and recover civil penalties for labor law violations on behalf of themselves, other workers, and the State of California.

If you believe your employer has misclassified your position or failed to pay overtime, contact our office today to discuss your potential claim and learn more about your rights under California and federal law. The experienced employment law attorneys at Blumenthal Nordrehaug Bhowmik DeBlouw LLP can help at offices in Los Angeles, San Diego, San Francisco, Sacramento, Riverside, and Chicago.