A collective action lawsuit filed against ByteDance, Inc., parent company of TikTok, alleges violations of the Fair Labor Standards Act regarding employee classification and overtime compensation for sales staff. The lawsuit, initiated by two former Client Solutions Managers, claims TikTok improperly classified Inside Sales Representatives as exempt employees, denying them overtime pay for work exceeding 40 hours per week despite requiring overtime to meet productivity standards and metrics.
The case, Connell et al. v. ByteDance, Inc. d/b/a TikTok (Case No.: 5:24-cv-07859-NC), filed in the Northern District of California on November 11, 2024, seeks to recover unpaid overtime compensation, liquidated damages, and other relief permitted under the FLSA. With ByteDance employing over 7,000 individuals in the United States and TikTok's significant influence in the social media landscape, the lawsuit's outcome could establish important precedents for how technology companies classify and compensate their sales personnel.
Daniel S. Brome of Nichols Kaster, LLP, representing the plaintiffs, emphasized the compensation issues at stake. "Companies like TikTok know that individuals performing inside sales work are generally entitled to overtime premiums, and know that demanding sales expectations and quotas pressure these employees to work long hours," Brome stated. The legal team includes attorneys from Nichols Kaster, LLP in San Francisco and the Kaplan Law Firm, PLLC in Austin, with Nichols Kaster recently receiving recognition on the 2025 Best Law Firms List for Litigation-Labor and Employment in Minneapolis.
Austin Kaplan of the Kaplan Law Firm highlighted the broader implications for workers' rights in technology. "As a workers' rights law firm in the tech hub of Austin, we stand up for workers when companies put profits over people. We stand ready to hold companies accountable for violating the rights of their sales teams," Kaplan explained. The lawsuit represents the plaintiffs and other similarly situated employees who performed non-exempt work without proper overtime compensation.
The case emerges during increasing scrutiny of labor practices within the technology sector and raises significant questions about sales role classification in digital businesses. If successful, the lawsuit could force technology companies to reassess employee classification practices and compensation structures for sales roles across the industry. The resolution may influence how rapidly growing technology companies structure their sales teams and compensate employees, with potential implications extending beyond TikTok to other technology companies and their sales forces nationwide.
Labor rights advocates and technology industry observers are closely monitoring the case as it progresses through the legal system. The lawsuit's outcome could have far-reaching consequences for worker classification, overtime pay standards, and labor rights within the technology industry, particularly for sales personnel who face pressure to meet productivity metrics and quotas. As companies like TikTok continue expanding, the legal and ethical treatment of their workforce becomes increasingly significant for both employees and the broader technology ecosystem.
