Drata Inc. $1.3M Sales Development Rep Class Action Lawsuit

William C. Gendron

Editor in Chief

Published

August 19, 2026 12:51 PM

Updated

August 19, 2026

Who are the class members?

The settlement covers two main groups of people who worked for Drata Inc. as sales development representatives during specific time periods. The settlement administrator determined eligibility using Drata’s employment records and the settlement administrator has already identified eligible individuals.

California settlement class: All individuals Drata Inc. employed in California as sales development representatives from May 1, 2021, through Sept. 1, 2025
Settlement collective (outside California): All individuals Drata Inc. employed in the United States, except California, as sales development representatives from June 11, 2021, through Sept. 1, 2025

How much can class members receive?

The total settlement fund is $1,300,000. The amount each class member will receive depends on their role, location and compensation during the relevant period. The settlement administrator will use Drata’s payroll records to determine each individual’s share. If the total number of eligible workweeks increases by more than 5% above the estimated number of 4,781, Drata will increase the gross settlement amount proportionally.

California settlement class: The settlement administrator will base payments on the total compensation sales development representatives in California earned from May 1, 2021, through Sept. 1, 2025. California class members receive a higher payment per week worked than other states due to additional claims under California law. The administrator will treat one-third of the payment as wages reported on Form W-2 and subject to tax withholdings. It will treat the remaining two-thirds as nonwage compensation and report it on Form 1099 with no taxes withheld.
Settlement collective (outside California): The settlement administrator will base payments on total compensation sales development representatives earned between June 11, 2021, and Sept. 1, 2025. The administrator will treat one-half of the payment as wages reported on Form W-2 and subject to tax withholdings. It will treat the other half as nonwage compensation on Form 1099 with no taxes withheld.

The settlement allocates a portion ($22,600) to settle claims under the California Private Attorneys General Act. Of this, $14,690 goes to the California Labor and Workforce Development Agency and $7,910 goes to California PAGA members based on the number of pay periods worked during the PAGA period of June 11, 2023, through Sept. 1, 2025.

No claim form necessary

Most class and collective members do not need to file a claim to receive a payment.

If class members do nothing, they will receive a check by mail at the last address on file.
To receive payment electronically, class members can visit the electronic payment election page and follow the instructions.
Individuals whose mailing address has changed should contact the settlement administrator to update their information.
Class members who believe their eligible work dates or compensation are incorrect should contact the settlement administrator.

Settlement administrator’s mailing address: Drata SDR Settlement, c/o Apex Class Action LLC, P.O. Box 54668, Irvine, CA 92619

Settlement administrator's email address: support@apexclassaction.com

Settlement administrator's phone number: 800-837-2979

Payout options

Paper check by mail (default option)
Electronic payment (if selected via the online portal)

$1.3 million settlement fund

The settlement fund of $1,300,000 includes:

Settlement administration costs: Amount not specified
Attorneys’ fees: Up to $433,333.33
Service awards to named plaintiffs: Up to $7,500 each ($67,500 total)
PAGA penalties: $22,600 ($14,690 to the California Labor and Workforce Development Agency and $7,910 to PAGA members)
Payments to eligible class and collective members: Remainder of the settlement fund

Important dates

Deadline to opt out (California class members): Oct. 13, 2026
Deadline to request electronic payment: Final effective date (to be determined after court approval)
Final fairness hearing: Date to be determined

When is the Drata Inc. sales development representative settlement payout date?

The settlement administrator will distribute payments approximately two months after the court resolves any appeals and grants final approval of the settlement.

Why is there a class action settlement?

The lawsuit alleged Drata Inc. misclassified sales development representatives as exempt from overtime laws, resulting in unpaid overtime, missed meal and rest breaks, late wage payments, noncompliant wage statements and unreimbursed business expenses.

Drata Inc. denied all allegations but agreed to settle to avoid the cost and risk of litigation.