A school bus company has agreed to pay $1.5 million to settle a class-action overtime lawsuit by its former Maryland employees.

The bus drivers, aides and others, who worked in Baltimore city and Baltimore County, sued First Student Inc. in federal court, alleging violations of the Fair Labor Standards Act, the Maryland Wage and Hour Law, and the Maryland Wage Payment and Collection Law.

The two sides filed their proposed settlement this week with Judge William D. Quarles in U.S. District Court in Baltimore. Under the proposal, the plaintiffs would get just under $1 million. Their lawyers, Brown, Goldstein & Levy LLP, would get about $500,000 in fees. $50,000 would cover litigation expenses.

C. Christopher Brown, who represents the class, said First Student was avoiding paying overtime by recording employees’ various duties separately. For example, if an employee spent 30 hours per week driving and 20 hours training other employees, that would not be entered into the books as a 50-hour workweek.

The settlement came about after Quarles allowed class-action status for both the federal and state-law claims, which “covered many, many more of the people than just those who had a federal class action,” Brown said.

There was a “series of favorable rulings that left the other side in a position of saying, ‘Hey, let’s cut our losses and settle,’” he said.

A spokeswoman for First Student declined to comment on the settlement, saying the litigation is ongoing.

First Student no longer has the city and county contracts, Brown said.

-Attributed by The Daily Record