The subclasses would consist of:
• Subclass A: those paid on a commission-only basis that worked more than 40 hours in a week, but did not receive overtime pay.
• Subclass B: those paid by salary (including salary plus commission or salary plus bonus) that worked more than 40 hours in a week or eight hours in a day, but did not receive overtime pay.
• Subclass C: those who were subject to at least one deduction from commissions or other wages, which deduction was not the result of a dishonest, willful, or grossly negligent act of the employee.
• Subclass D: those in subclasses A, B, or C who were no longer employed by Morgan Stanley at the time the lawsuit was filed.

Questions to be determined are:
• Whether the class members qualify for exempt status under the inside salesperson exemption to the FLSA
• Whether the class members qualify for exempt status under the administrative exemption to the FLSA
• Whether Morgan Stanley qualifies as a “retail or service establishment”
• The extent to which Morgan Stanley analyzed the job duties and responsibilities before classifying employees
• The number of hours per week and per day that class members are expected to work
• Morgan Stanley’s expectations of the duties and responsibilities of employees, and whether those expectations are reasonable
• Morgan Stanley’s policies and procedures on deductions from pay
• Whether Morgan Stanley’s withholding of overtime pay and wage deductions were willful
• Whether class member are entitled to civil penalties

The Complaint lists the following causes of action:

1. Restitution of Overtime Wages for members of Subclass A: Subclass members were improperly classified as exempt, often worked over 40 hours per week or eight hours per day, and did not receive overtime compensation as regulated by the FLSA. This cause of action also alleges that Morgan Stanley does not qualify for an exemption from FLSA regulations as a “retail and service establishment.”
2. Restitution of Overtime Wages for members of Subclass B: Subclass B members were improperly classified as exempt, but are non-exempt as they do not customarily and regularly exercise discretion and independent judgment in the Company’s affairs. Therefore, they should be entitled to overtime for any hours worked over 40 per week or eight per day.
3. Restitution of Wage Deductions for members of Subclass C: Morgan Stanley allegedly subjected subclass members to illegal deductions from wages that were dishonest, willful, or grossly negligent.
4. Labor Code Penalties: Class members seek several penalties applicable under the CA Labor Code.
5. Waiting Time Penalties: Class members seek waiting time penalties of up to 30 days’ pay.
6. Rest and Meal Breaks for members of Subclasses A and B: Subclass members were improperly classified as exempt and should be entitled to pay for rest and meal breaks.