Merrill settles unpaid-OT suit for $12M

Lawsuit filed on behalf of a potential class of 12,000 client associates seeking compensation for unpaid overtime work between 2010 and 2012

Feb 24, 2013 @ 12:01 am

By Andrew Osterland

+ Zoom
(Bloomberg)

Bank of America Merrill Lynch has settled a lawsuit filed on behalf of a potential class of 12,000 client associates seeking compensation for unpaid overtime work between 2010 and 2012.

The $12 million settlement was reached this month, BofA confirmed.

“We think this is a good result and we commend our clients for coming forward,” said lead plaintiff's attorney Jennifer Schoen Gilbert of Stowell & Friedman Ltd.

Client associates support Merrill Lynch financial advisers in operations and developing new business. The plaintiffs argued that they were paid overtime based on an “incorrect and low regular rate of pay,” and that Merrill failed to keep accurate accounts of the overtime hours worked by associates, according to court filings.

There are five classes of potential claimants — four state classes in Maryland, Washington, New York and California, and a fifth federal class that covers all claimants not working with Merrill in one of those states.

It's unclear how large the claimant group will be, as the federal case is an opt-in lawsuit. The amount recovered by individual claimants, the majority of whom are women, will be based on a formula that takes into account associates' individual circumstances and work experience.

BofA spokesman Bill Haldin declined to comment further.

The U.S. District Court for the Southern District of New York will now review the settlement.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

What does the adviser of the future need in their toolbox?

Advisers continue to embrace all of the new offerings and products the fintech space has to offer. But what else can help them improve their business?

Video Spotlight

Are Your Clients Prepared For Market Downturns?

Sponsored by Prudential

Video Spotlight

Path to growth

Video Spotlight

Path to growth

Latest news & opinion

What not to say to clients when the markets drop

Here's what advisers should steer clear of saying the next time stocks turn downward.

SEC bars former rep for alleged share price manipulation

George Thoreson tried to keep penny stock's price high to enable Nasdaq listing.

Nevada fiduciary law raises concerns among retirement professionals, brokerage industry

Critics complain that it conflicts with ERISA and SEC rules and has potential to spur other states to pass their own version of a fiduciary rule.

A special need for financial advice

Advisers don't have to be experts to help special needs families get a jump on lifelong planning.

Broker-dealers and RIAs at loggerheads over fiduciary rule delay

Companies and groups weighing in with comment letters have vastly different viewpoints on the delay's potential impact.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print