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[**Labor and Employment Law**](https://exlitem.com/jury-verdict/category/wage-theft/jury-verdict/category/labor-and-employment-law) [**Wage Theft**](https://exlitem.com/jury-verdict/category/wage-theft/jury-verdict/category/wage-theft)

October 10, 2025

###### [IAA Wage Theft Lawsuit Settles for $1.5 Million](https://exlitem.com/jury-verdict/category/wage-theft/jury-verdict/iaa-wage-theft-lawsuit-settles-for-15-million)

[](https://exlitem.com/jury-verdict/category/wage-theft/jury-verdict/iaa-wage-theft-lawsuit-settles-for-15-million)

Former employee Hector Leon initiated a class action lawsuit against Insurance Auto Auctions, Inc., alleging the company systematically failed to follow California’s stringent wage and hour laws, resulting in substantial financial losses for a large group of current and former non-exempt employees. The primary claims involved the non-payment of minimum and overtime wages, failure to provide mandatory meal and rest periods, and issuing inaccurate wage statements. The defendant, Insurance Auto Auctions, Inc., denied the claims but ultimately agreed to a negotiated, binding settlement, establishing a total gross settlement fund of $1,500,000 (One Million Five Hundred Thousand Dollars) to resolve all claims made by the class.