Cambridge Marketing Firm Hubspot Allegedly Broke Wage and Hour Laws

Cambridge, Mass. – An online marketing firm based in Cambridge, Mass. is being sued by a former business development representative for allegedly not paying overtime owed to him.

Albert McCormack, who lives in Freeport, Maine, filed a class action lawsuit in federal court in Boston on January 17 against Hubspot after he and others in the same position allegedly regularly worked around 60 hours a week without receiving overtime.

According to the court complaint, Hubspot allegedly “maintained a policy of not paying overtime to their Business Development Representatives for all hours worked in excess of 40 hours per week.”

The action was brought under the federal Fair Labor Standards Act and Massachusetts’ wage and hour laws, following a complaint with the Attorney General’s Fair Labor Division; authorization to bring a private lawsuit against Hubspot was then given by Martha Coakley’s office.

McCormack, who was employed by Hubspot between September 2012 and May last year, was primarily responsible for generating “sales leads” for the company, which is described by the complaint as a business “providing inbound marketing software that helps businesses attract and engage customers on the internet.”

It’s claimed that McCormack “received a base salary of approximately $30,000 per year, plus commissions, during his employment” at Hubspot, but he “regularly worked in excess of forty hours per week,” beyond which federal and state laws may entitle him to overtime pay.

According to the complaint, Hubspot “changed their pay practices to include pay for overtime to business development representatives beginning April 1, 2013,” but prior to that date, he was allegedly not compensated “for the hours he worked over 40 hours per week.”

It’s claimed that while the number of hours McCormack worked each week varied, “on average” he worked around “60 hours a week,” allegedly with the knowledge of his employers who “set the working conditions and received regular reports from” him.

Despite complaining to the company, it’s alleged that Hubspot have continued in their failure to pay “all of the wages due to him under the law.”

According to the complaint, while the “exact number” of those who may be considered part of the class action lawsuit “is unknown,” it’s believed “that there are at least 40 similarly situated” employees, “most of whom it is believed would not likely file individual suits because they lack adequate financial resources, access to attorneys or knowledge of their claims.”

A spokesperson for Hubspot, and the company’s legal counsel both declined to comment on the case. McCormack’s attorney could not be reached for comment before the filing of this report.

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