Payscale $675K SDR Overtime Class Action Settlement

Current and former employees who worked as sales development representatives at Payscale between June 1, 2022, and Nov. 21, 2025, may be eligible to submit a claim for a cash payment from a class action settlement.

Payscale Inc. agreed to pay $675,000 to settle a class action lawsuit alleging it failed to pay overtime wages and did not properly record and compensate all hours sales development representatives worked. The settlement covers approximately 7,971 workweeks and 135 current and former sales development representatives.

Who can file a claim?

Class members must meet the following criteria:

• Payscale employed them as a sales development representative.
• Their employment occurred at any time between June 1, 2022, and Nov. 21, 2025.

How much is the class action settlement payout?

Cash payment: Class members can submit a claim to receive a pro rata cash payment from the net settlement fund. The settlement administrator will determine the final payment amount by the number of weeks each sales development representative worked during the class period. Half of each settlement payment will be subject to payroll deductions.

How to claim a class action rebate

To receive a settlement payment, class members can file a claim online, mail the claim form included with their settlement notice using the prestamped envelope or print a claim form and mail, email or fax it to the settlement administrator.

Settlement administrator’s mailing address: ILYM Group Inc., P.O. Box 2031, Tustin, CA 92781

Settlement administrator's email address: claims@ilymgroup.com

Settlement administrator's fax number: 888-845-6185

The claim deadline is April 6, 2026.

Class members who wish to dispute their number of weeks worked and payment calculation should submit documentation supporting their position along with their claim form. The settlement administrator will make the final determination regarding any disputes.

Required claim information

Online claims require the ILYM ID from the settlement notice and the class member's last name.

Payout options

• Paper check mailed to the address provided

$675,000 Payscale settlement fund

The settlement fund of $675,000 will include:

• Settlement administration costs: To be determined
• Attorneys’ fees: Up to $225,000
• Attorneys' expenses: Up to $7,500
• Service awards to lead plaintiffs: $10,000 each ($20,000 total)
• PAGA fund: $5,000 (65% to the state of California and 35% to California sales development representative)
• Payments to approved claimants: Remaining funds

Important dates

• Deadline to file a claim: April 6, 2026

When is the Payscale overtime settlement payout date?

The settlement administrator will mail checks to approved claimants approximately seven weeks after the claim deadline.

Why is there a class action settlement?

The class action lawsuit alleged Payscale failed to pay overtime wages and did not properly record and compensate all hours sales development representatives worked.

Payscale denied any wrongdoing but agreed to settle to avoid the risks and expense associated with continued litigation.

Sources

1. Class notice
2. Claim form
3. Settlement agreement