By As Law Online 
Thousands of Americans rent single-family homes from large corporate landlords. For many, the experience includes delayed repairs, unexpected fees, and questions about fair treatment. Employees who keep those properties running sometimes face their own challenges around pay. FirstKey Homes, a major player in the single-family rental housing market, has drawn attention through both worker claims under the Fair Labor Standards Act and patterns of tenant complaints. This article breaks down the key legal proceedings, what the court filings show, and practical steps for people who may be affected.
The goal is straightforward. Readers deserve clear information about the FirstKey Homes Lawsuit matters involving FLSA collective actions, maintenance and fee disputes, and Better Business Bureau complaints so they can understand their options.
Understanding FirstKey Homes and the Single-Family Rental Landscape
FirstKey Homes manages tens of thousands of single-family rental homes across dozens of markets. The company operates as a large-scale property management firm focused on leased houses rather than apartment complexes. Backed by private equity interests, it has grown rapidly in recent years as institutional investors expanded into residential rentals.
This scale creates both efficiencies and friction points. On one hand, centralized systems can standardize leasing and maintenance. On the other, tenants and staff sometimes report that the distance between corporate policy and local realities leads to slower responses or disputes over costs. Public records and consumer complaint platforms reflect these tensions.
The company’s BBB profile shows an accredited status with an A+ rating in some listings, yet customer reviews average well below three stars in aggregate data from recent years. Common themes in those reviews include maintenance delays, charges for pre-existing conditions, and security deposit disputes. These consumer experiences sit alongside separate employment litigation focused on wage practices.
The FLSA Collective Action Landscape at FirstKey Homes
The Fair Labor Standards Act sets federal minimum wage, overtime, and recordkeeping rules. Non-exempt employees generally must receive time-and-a-half pay for hours worked over 40 in a workweek. Employers who misclassify workers as exempt or fail to track hours carefully can face collective actions under 29 U.S.C. § 216(b). These cases allow similarly situated workers to join together.
Two notable cases illustrate the pattern at FirstKey Homes.
Plunkett v. FirstKey Homes LLC: The Settled Leasing Agent Case
In December 2023, Jeffrey Plunkett filed a collective action in the U.S. District Court for the Northern District of Texas (Case No. 3:23-cv-02684). The suit targeted leasing agents. Plaintiffs alleged that FirstKey denied overtime compensation at the required rate for hours over 40 per week. One subgroup claimed non-exempt status yet unpaid overtime. Another subgroup, including Ethel June Maranan, alleged misclassification as exempt employees.
The case proceeded with pre-notice discovery consistent with Fifth Circuit guidance in Swales v. KLLM Transport Services. During that period, the court addressed allegations that the company contacted putative collective members with settlement offers that plaintiffs called coercive and unauthorized. The court issued sanctions related to those communications.
In late 2024 the parties reached a settlement. The court approved a $5 million gross settlement covering 83 current and former leasing agents and regional leasing agents. Named plaintiffs received service awards of $15,000 each. Opt-in plaintiffs received smaller service awards. Class counsel fees were capped at no more than $2 million plus costs. Average individual recoveries were described by counsel as substantial relative to the claims. The action closed after approval.
This resolution provided meaningful recovery for the participating workers while avoiding prolonged litigation. It also highlighted how FLSA collective actions can resolve quickly once the parties exchange enough information to evaluate the strength of the claims.
Harper v. FirstKey Homes LLC: The Ongoing Move-In Coordinator Case
A second FLSA collective action, Harper et al. v. FirstKey Homes LLC (Case No. 3:25-cv-00642), was filed in the same court in March 2025. Named plaintiffs Taki Harper, Shawnte Leigh, and Kelly Williams represent move-in coordinators. They allege that FirstKey willfully failed to pay overtime for hours worked over 40 per week and failed to maintain accurate records.
The court authorized prenotice discovery under the Swales framework so the parties could test whether the proposed collective members are similarly situated. Discovery has focused on emails, activity records from platforms such as Yardi, Vonage, InContact, Lead, and Zendesk, and other timekeeping data. In November 2025 the magistrate judge granted in part and denied in part plaintiffs’ motion to compel. FirstKey was ordered to produce certain emails and activity records while some broader requests were limited as disproportionate. A later order in January 2026 addressed a defense motion to compel, requiring plaintiffs to respond more fully to certain interrogatories and requests.
As of the most recent public docket activity, the case remains in the pre-certification discovery phase. No settlement has been announced. Workers who held similar roles during the relevant period may eventually receive notice if the court authorizes it. Anyone who believes they performed move-in coordinator duties and worked unpaid overtime should monitor the case or consult counsel familiar with FLSA collective actions.
Key Concepts in FLSA Collective Actions Explained
Many employees do not realize they may have a claim until they learn the basics. Here is a plain-language overview.
Exempt versus non-exempt status. The FLSA provides exemptions for certain administrative, executive, and professional employees who meet both salary and duties tests. Simply calling a worker a “manager” or paying a salary does not automatically make the position exempt. Courts look at the actual job duties performed.
Collective versus class actions. FLSA cases use an opt-in mechanism. Workers must affirmatively join. This differs from Rule 23 class actions where members are included unless they opt out.
Prenotice discovery. In the Fifth Circuit, courts often allow limited discovery before deciding whether to authorize notice to potential collective members. The goal is to determine similarity of situation without forcing the employer to produce records for every possible worker.
Liquidated damages. Successful FLSA plaintiffs can recover unpaid wages plus an equal amount as liquidated damages unless the employer proves good-faith compliance. Attorney fees and costs are also recoverable.
Workers who suspect underpayment should preserve pay stubs, schedules, emails about hours, and any communications about classification. Early documentation strengthens any later claim.
Tenant Disputes: Maintenance, Fees, and Habitability Concerns
Separate from the employment cases, FirstKey Homes has faced repeated tenant complaints about property conditions and charges. These issues appear in Better Business Bureau filings, state attorney general interventions, and individual lawsuits.
Patterns in BBB Complaints and Customer Reviews
BBB profiles for FirstKey Homes locations show hundreds of customer reviews averaging around 1.5 stars in recent aggregates. Common complaints include:
- Delayed or incomplete responses to maintenance requests involving air conditioning, plumbing, mold, leaks, and structural issues.
- Charges for repairs that tenants say existed at move-in or resulted from normal wear and tear.
- Security deposit deductions without adequate itemization or photographic evidence.
- Unexpected fees related to utilities, notice periods, or move-out cleaning.
- Rent increases at renewal that tenants view as disconnected from property condition.
One recurring theme involves trip or service fees charged even when the underlying problem is not resolved on the first visit. Another involves move-out statements that list charges tenants dispute as pre-existing or ordinary wear. Some tenants report success after escalating through BBB or providing their own move-in and move-out photographs. Others describe prolonged disputes.
Regulatory and State-Level Responses
In 2025 the North Carolina Department of Justice secured refunds for 161 tenants. The issue involved notices that incorrectly directed residents to transfer utility accounts into their own names, generating unexpected fees and lease-violation claims. FirstKey agreed to compensate affected tenants at 200 percent of incurred fees in many cases and to review internal policies.
Other states have seen individual and putative class claims focused on security deposits, habitability, and fee transparency. A Florida filing alleged mishandling of security deposits under state statutes. In the Kansas City area, families have sued over alleged failures to address mold, flooding, and electrical hazards while the company pursued rent and eviction actions. These cases remain in various stages and the allegations have not been adjudicated as proven facts.
Tenants should know that most states impose an implied warranty of habitability. Landlords generally must keep premises safe and sanitary. Lease clauses that attempt to shift all maintenance responsibility to the tenant may face legal limits. Local housing codes and state landlord-tenant acts often require timely repairs for essential systems such as heat, water, and electricity.
Practical Steps for Employees Considering FLSA Claims
If you worked for FirstKey Homes as a leasing agent, regional leasing agent, move-in coordinator, or in a similar role and believe you were denied overtime:
- Gather records. Collect pay stubs, time records, emails about scheduling or off-the-clock work, and any job descriptions.
- Calculate potential damages. Compare hours worked against hours paid. Remember the three-year lookback for willful violations.
- Consult counsel experienced in FLSA collective actions. Many firms handle these cases on a contingency basis.
- Watch for notice. In active cases such as Harper, court-authorized notice may reach potential opt-ins.
- Avoid signing releases without advice. Earlier litigation showed courts will scrutinize unilateral settlement efforts that interfere with collective rights.
The Department of Labor Wage and Hour Division also accepts complaints and can investigate independently. Information is available at dol.gov/agencies/whd.
Practical Steps for Tenants Facing Maintenance or Fee Issues
Document everything. Submit maintenance requests in writing through the company portal or email and keep copies. Photograph conditions at move-in, during occupancy, and at move-out. Request itemized statements for any proposed deductions from the security deposit.
Know your state’s deadlines. Many jurisdictions require landlords to return deposits or provide itemized deductions within a set number of days (often 14 to 60). Failure to follow the statute can result in penalties.
Escalate thoughtfully. Use the company’s internal process first. If unresolved, file a BBB complaint, contact your state attorney general’s consumer protection division, or consult a local legal aid or tenant-rights organization. Small-claims court is often available for deposit disputes under statutory dollar limits.
Review the lease carefully before signing renewals. Pay attention to fee schedules, notice requirements, and any clauses that limit the landlord’s maintenance obligations. Ask clarifying questions in writing.
Balancing Corporate Scale and Individual Rights
Large single-family rental operators fill a market need for housing stock that many individual landlords cannot supply at the same volume. At the same time, the concentration of ownership can amplify the impact of any systemic problems in maintenance, fee practices, or wage compliance. The FirstKey Homes Lawsuit matters illustrate both the strengths and the friction points of this model.
The settled Plunkett case shows that FLSA claims can produce significant recoveries when workers join together and the evidence supports unpaid overtime. The ongoing Harper case will test similar theories for a different employee group. On the tenant side, the volume of BBB complaints and isolated regulatory settlements signal areas where operational improvements could reduce friction.
Courts and regulators continue to refine the rules that apply to corporate landlords and their workforces. Employees and tenants who understand those rules are better positioned to protect their interests.
Conclusion
The legal landscape around FirstKey Homes includes a completed $5 million FLSA settlement for leasing agents, an active collective action by move-in coordinators, and a steady stream of tenant complaints about maintenance and fees. These developments offer clear lessons. Workers should track their hours and understand exemption rules. Tenants should document conditions and know their state’s deposit and habitability protections. Both groups benefit from timely legal advice when disputes arise.
If you believe you have an unpaid wage claim or a significant tenant dispute, consult a qualified attorney or contact the appropriate government agency to evaluate your specific situation. Knowledge of the process is the first step toward a fair resolution.
Frequently Asked Questions
What is the status of the FirstKey Homes FLSA lawsuits?
The Plunkett leasing-agent case settled for $5 million in late 2024 and is closed. The Harper move-in coordinator case remains active in the Northern District of Texas with ongoing prenotice discovery.
Who can join an FLSA collective action against FirstKey Homes?
Workers who performed similar duties during the relevant period and experienced the same alleged pay practices may be eligible to opt in if a court authorizes notice. Eligibility depends on the specific case pleadings and court orders.
How do I know if I was misclassified under the FLSA?
Misclassification claims turn on whether the employee’s actual job duties and pay structure meet the strict tests for exemption. A salary alone is not enough. An employment lawyer can review the facts.
What should I do if FirstKey Homes withholds my security deposit?
Request a written itemized statement. Compare it against move-in and move-out photos. Follow your state’s statutory process and deadlines. Small-claims court or a consumer complaint may be appropriate if the dispute is not resolved.
Are there ongoing class actions for tenants against FirstKey Homes?
Various individual and putative class claims have been filed in different states focusing on deposits, fees, and habitability. No single nationwide tenant class action has been universally certified as of the latest public reports. Check local court records or consult counsel.
How can I file a BBB complaint against FirstKey Homes?
Visit the Better Business Bureau website, search for the company, and follow the online complaint process. Include documentation and a clear statement of the desired resolution.
Where can employees learn more about FLSA rights?
The U.S. Department of Labor Wage and Hour Division website (dol.gov/agencies/whd) provides fact sheets, complaint forms, and contact information for regional offices.
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