JPMorgan and former brokers reach $5.7 million settlement to end overtime pay dispute

The five-year class-action battle involved 1,056 former financial advisers

Apr 11, 2017 @ 2:12 pm

By InvestmentNews

+ Zoom
(Bloomberg)

A $5.7 million settlement has been reached in a five-year class-action battle between JPMorgan Chase & Co. and 1,056 former financial advisers about overtime pay.

The deal, which was presented to a federal district court in New York last week, covers state and federal claims from workers who say they were denied overtime, had unauthorized deductions taken from their wages and were improperly required to pay for expenses in violation of state laws. It covers financial and private-client advisers in New York and New Jersey, as well as private-client and independent private-client advisers in California, according to law360.com.

"By reaching a settlement prior to trial, plaintiffs will avoid further expense and delay in obtaining a recovery for the class," the motion said.

The long road to the deal was due in part to contention over which arbitration rules were to be followed. Last week, Judge Laura Taylor Swain granted JPMorgan's bid to compel arbitration for workers who had signed a version of Chase's arbitration agreement governed by the rules of the American Arbitration Association, but also kept the claims of plaintiffs who signed a version governed by rules of the Financial Industry Regulatory Authority Inc.

0
Comments

What do you think?

View comments

Recommended for you

Sponsored financial news

Featured video

Events

Adviser marketing: 3 strategies for success

To help advisers sift through the noise and execute a marketing plan that will deliver the most ROI, three executives from Carson Group sit down with Shannon Rosic to deliver some strategies you can implement today.

Video Spotlight

The Search for Income

Sponsored by PGIM Investments

Recommended Video

Path to growth

Latest news & opinion

T. Rowe Price steps up its game to serve financial advisers

The Baltimore-based mutual fund giant is more aggressively targeting financial advisers with a beefed-up wholesale crew and placement on custodial platforms.

The most important tax changes for 2018

The Internal Revenue Service issued inflation adjustments to more than 50 tax provisions for 2018.

Shift to Roth 401(k)s 'highly likely' part of tax reform: former Treasury official Mark Iwry

Mandated contributions to Roth accounts would likely only be partial, as opposed to having a full repeal of pre-tax accounts.

E*Trade acquiring custodian Trust Company of America

Discount broker buying second-tier custodian for $275 million.

Another thousand Dow points higher, and investors yawn

Market milestones keep falling like dominoes, with 51 records broken so far this year.

X

Subscribe and Save 60%

Premium Access
Print + Digital

Learn more
Subscribe to Print