The lawsuit, filed on November 11, 2024, in the Northern District of California, claims that TikTok improperly classified its Inside Sales Representatives as exempt employees, denying them overtime pay for work exceeding 40 hours per week. The plaintiffs, representing themselves and other similarly situated employees, assert that TikTok required Inside Sales Representatives to work overtime to meet the company's productivity standards and metrics. Despite performing non-exempt work, these employees were allegedly not compensated for their additional hours, a practice that the lawsuit contends violates federal labor laws.
ByteDance, Inc., which operates the popular short-form video platform TikTok, employs over 7,000 individuals in the United States. The company's rapid growth and widespread influence in the social media landscape make this case particularly noteworthy, as it could set a precedent for how tech companies classify and compensate their sales staff. The lawsuit seeks to recover unpaid overtime compensation, liquidated damages, and other relief permitted under the FLSA. If successful, it could have far-reaching implications for the tech industry, potentially forcing companies to reassess their employee classification practices and compensation structures for sales roles.
Daniel S. Brome of Nichols Kaster, LLP, representing the plaintiffs, emphasized the importance of fair compensation for extensive overtime work. He stated, "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." Austin Kaplan of the Kaplan Law Firm, co-counsel for the plaintiffs, highlighted the broader context of workers' rights in the tech industry. "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 case, Connell et al. v. ByteDance, Inc. d/b/a TikTok (Case No.: 5:24-cv-07859-NC), is being closely watched by labor rights advocates and tech industry observers. It raises important questions about the classification of sales roles in the digital age and the responsibilities of rapidly growing tech companies towards their workforce. This lawsuit comes at a time when scrutiny of labor practices in the tech sector is intensifying. As companies like TikTok continue to expand and evolve, the legal and ethical treatment of their workforce becomes increasingly important. The outcome of this case could potentially influence how other tech companies structure their sales teams and compensate their employees.
The plaintiffs are represented by attorneys from Nichols Kaster, LLP in San Francisco and the Kaplan Law Firm, PLLC in Austin. Nichols Kaster, PLLP, known for its work in employee, consumer, and civil rights cases, has recently received recognition on the 2025 Best Law Firms List for Litigation-Labor and Employment in Minneapolis. As the case progresses, it will likely draw attention to the broader issues of worker classification, overtime pay, and labor rights in the tech industry. The resolution of this lawsuit could have significant implications not only for TikTok and its employees but also for other tech companies and their sales forces across the United States.
