FirstKey Homes Lawsuit: What You Should Know

If you’ve heard the name FirstKey Homes lately, it may be in connection with lawsuits against the company. For renters and former employees, these legal fights spell out serious complaints: from unpaid overtime for staff to tenants claiming unsafe housing, surprise fees, and unfair lease-practices. Whether you rented from FirstKey, worked for them, or are simply curious — this story shows how complicated “renting from a big company” can get, and why many people are paying attention.

Background

FirstKey Homes is a large national company that owns and leases single-family houses across many states. Because of the scale of its operations, its actions can affect many individuals — and that has led to lawsuits from both employees and renters.

Legal claims against FirstKey generally fall into two buckets:

• Labor lawsuits — workers (leasing agents or regional agents) saying FirstKey failed to pay overtime or minimum wage properly.
• Tenant / housing complaints — renters alleging problems such as poor maintenance, utility or fee issues, unsafe living conditions, or unfair lease/eviction practices. Various public complaints, rent escrow suits, and state-level investigations reflect these issues.

One of the biggest and most publicized suits is Plunkett v. FirstKey Homes LLC, a collective labor action filed by leasing agents claiming unpaid overtime and wage violations.

Who’s Affected

• Former or current FirstKey employees — especially leasing agents or regional leasing agents who claim they worked overtime hours without proper pay.
• Renters and tenants — people living in homes managed by FirstKey, who may have faced poor maintenance, utility-account problems, mold, or unexpected lease/eviction disputes.
• Prospective renters or employees — those considering leasing or working with FirstKey may want to be cautious and know what past issues have surfaced.

In short: both renters and staff of FirstKey have brought forward claims.

What Has Happened So Far

While each case differs, here’s a basic overview of major developments — especially in the most public lawsuit (Plunkett):

• December 5, 2023 — Plunkett (and other leasing agents) filed the lawsuit under the federal labor law (the Fair Labor Standards Act, or FLSA), alleging unpaid overtime and minimum wage violations.
• Early 2024 — The parties engaged in extensive discovery (document exchange, evidence sharing) — over two million pages including employee records and pay data.
• July 25, 2024 — After mediation, the parties reached a settlement agreement.
• Late 2024 — A federal judge reviewed and approved the settlement. Under the deal, FirstKey agreed to pay a total of $5 million to a group of 83 current and former leasing agents and regional leasing agents.
• 2025 and beyond — The settlement became effective. FirstKey must distribute payments to qualifying agents (if they submitted their consent forms by the deadline).

Meanwhile, separate tenant-side complaints continue around the country (for example, in Ohio and North Carolina), sometimes involving rent-escrow suits, housing condition disputes, and investigations into utility-related practices.

What’s at Stake

For Employees

• Back pay and overtime compensation — For many agents, the settlement provides significant monetary relief for hours they worked but weren’t paid for. In the Plunkett case, estimates show some individuals receiving “gross average” payments of over $60,000.
• Legal accountability — The settlement includes attorney fees and formally resolves many of the claims, giving closure to workers who felt exploited.

For Renters

• Better living conditions — Tenant lawsuits and public pressure may push FirstKey to improve maintenance, safety, and transparency.
• Protection against unfair fees or utility practices — Complaints raised over forced utility transfers or unexpected charges may result in refunds or revised policies. For example, some recent tenants were reportedly receiving compensation or refunds after complaints to state authorities.
• Legal precedent and awareness — As more lawsuits surface, renters nationwide may feel empowered to claim their rights, especially if their homes are unsafe or landlords are unresponsive.

What to Watch Next

• Distribution of settlement funds — In the wake of the $5 million judgment in Plunkett, eligible leasing agents should check if they submitted consent forms and monitor disbursement.
• New or expanded lawsuits — More former employees or renters might join collective actions or file new claims, especially if they have similar grievances (unpaid wages, poor living conditions, utility issues).
• Regulatory or enforcement developments — Some state attorneys general (like in North Carolina) have already intervened when tenants complained about unfair utility practices. There may be more such investigations or even changes in housing regulations.
• Tenant-side legal victories — Local courts may rule in favor of renters who escrow rent, withhold payments, or sue over property conditions — potentially encouraging more tenants to take legal steps.

You might also start seeing news headlines like:

• FirstKey Homes lawsuit settlement — tenants / ex-employees paid
• Who can claim compensation from FirstKey Homes?
• Case update: FirstKey ordered to fix plumbing / utilities / housing code violations

FAQ

1. What is the FirstKey Homes lawsuit all about?
   The primary lawsuit (Plunkett v. FirstKey Homes LLC) was filed by leasing agents who claimed FirstKey failed to pay proper wages and overtime as required under federal law. Other lawsuits and complaints involve tenants alleging poor maintenance, unsafe housing conditions, unfair fees, improper utility-account transfers, and unfair rent or eviction practices.
2. Who can claim compensation from FirstKey?

• In the Plunkett settlement: only FirstKey leasing agents or regional leasing agents who worked during the relevant period and submitted a consent form by the deadline are eligible for payment.
• For tenants: anyone renting a home from FirstKey who experienced violations (unsafe housing, inadequate maintenance, unfair fees or utility practices) might have grounds for a claim — though outcomes vary by state, lease terms, and local laws.

3. How much did the settlement provide in Plunkett?
   The approved settlement fund was $5 million, to be split among 83 current or former leasing agents and regional leasing agents.
4. Does this settlement affect renters, too?
   Not directly. The Plunkett case dealt with employee wage claims. However — separate lawsuits and tenant complaints are ongoing, which could benefit renters if courts find FirstKey violated housing laws or lease agreements.
5. Can new lawsuits be filed against FirstKey?
   Yes — both from former employees (for unpaid wages or worker protections) and from renters (for housing conditions, fees, utilities, lease disputes, etc.). The company currently faces multiple court cases in various states.
6. How long will the entire process take (for future cases)?
   It depends. Labor-related lawsuits like Plunkett can move from filing to settlement in about 1 to 2 years. Tenant/housing-related cases can vary widely — from a few months (if issues are obvious and resolved quickly) to several years if litigation, appeals, or complex housing code investigations are involved.

Conclusion

The FirstKey Homes lawsuit — particularly the Plunkett case — has drawn attention to how large rental companies treat both their employees and tenants. For many, the events highlight risks: from unpaid work to poor housing conditions. But the legal developments also show that these issues can be challenged — and sometimes resolved.

If you worked for FirstKey or rented from them, it may be worth checking whether you qualify to join a claim, or keeping an eye on ongoing lawsuits and regulatory actions. The FirstKey saga offers lessons for renters and homeowners across the country on what “management by a big company” can actually mean.

This is a story still unfolding — and what happens next might matter for thousands more.