A 2011 settlement of the banker’s overtime class action lawsuit by JPMorgan Chase & Co. settled the wage and hour claim in the lawsuit for $16 million. One-third of the settlement will go to the attorneys for the named plaintiffs. Named plaintiffs will also apply for enhancement awards totaling $95,000. The settlement will make it easier for those impacted by the company’s policies and practices to fight for equal pay and work hours.
Class action lawsuit
The bank, one of the largest in the world, recently agreed to pay millions to its business bankers in two California and New York class actions. This follows the bank’s unsuccessful attempt to move the case to a more favorable jurisdiction. However, the bank isn’t done yet. In July of this year, a federal judge denied JPMorgan’s request to dismiss the lawsuit, finding that its employees were entitled to damages under federal law.
In September 2013, JPMorgan Chase agreed to pay nearly $3 million in unpaid overtime to its mortgage bankers in a class action lawsuit. The assistant branch managers claimed that Chase had wrongfully classified them as exempt from overtime protections. Under the Fair Labor Standards Act, non-exempt employees must be paid overtime, even if they aren’t deemed “essential” to the company’s business. Additionally, employers that misclassify employees can be penalized with back wages, attorneys’ fees, and liquidated damages.
A class-action lawsuit filed against J.P. Morgan Chase & Co. could force the bank to repay unpaid overtime to as many as 1,000 employees. The Rochester-based lawsuit was filed by a former underwriter of the bank. The plaintiffs claim that they were wrongly classified and not paid overtime. Because they were compensated on a commission basis, the bank deducted losses from their compensation.
The SEC and CFTC have also reached separate settlements against JPMorgan. In a separate case relating to the secondary cash market for Treasury notes and bonds, the SEC and CFTC settled. In that settlement, the bank agreed to pay over $920 million in criminal monetary penalties, civil disgorgement, and victim compensation to settle the case. The money is credited against the bank’s payments to the Securities and Exchange Commission and CFTC.
Class action settlement
A recent class action settlement for the JP Morgan Business Banker Overtime Claiming lawsuit has resolved several issues that arose from the alleged failure of JPMorgan Chase to pay overtime wages to eligible employees. In the lawsuit, employees argued that JPMorgan failed to pay overtime compensation to them due to a misclassification of business bankers as exempt, which meant that they were not eligible to receive overtime pay. Plaintiffs were represented by attorneys D. Maimon Kirschenbaum, Denise A. Schulman, David Harrison, and Richard J. Burch. In 2009, a second circuit judge reversed a summary judgment ruling in JPMorgan’s favor, and in May 2010, the U.S. Supreme Court denied JPMorgan’s request to appeal.
This settlement is open to Chase business bankers who were not based in California, or who did not sign an arbitration agreement. Eligible JPMorgan bankers who submit valid claim forms for overtime pay will receive a percentage of the settlement funds based on the number of workweeks they worked as business bankers for a Chase branch. Those who did not sign an arbitration agreement will receive 86 percent of the settlement fund. Those who signed an arbitration agreement will receive fourteen percent.
Class action lawsuit seeking class-action status
Two former financial consultants are suing JPMorgan Chase & Co., claiming that they were improperly classified as exempt employees and not paid overtime. The bank is the country’s largest commercial bank and performs significant real estate loan underwriting and origination. There are approximately 500-1,000 underwriters nationwide, and the plaintiffs are seeking class-action status. The settlement will result in about $16.7 million for the putative class.
The settlement resolves the lawsuit brought against JPMorgan in 2009. The plaintiffs argued that JPMorgan misclassified loan underwriters as exempt, thereby denying them overtime compensation. The case filed in April 2009 was approved by the Second Circuit, and more than 3,000 employees have opted to join the settlement. The settlement is a victory for the employees, as the judge reversed a ruling in the bank’s favor in November 2009.
In a preliminarily approved settlement, JP Morgan Chase & Co. will pay $16.7 million to settle a wage and hour lawsuit involving assistant branch managers. Plaintiffs alleged that Chase misclassified them as exempt from overtime protections while they are non-exempt. In addition to penalties for back wages, misclassification of employees can result in liquidated damages and attorney fees.
The settlement amounts reflect the potential recovery for the plaintiffs and their attorneys. Plaintiff’s counsel acknowledges that some claims are not viable. The settlement amounts are, however, fair and adequate given the total potential recovery of almost $2 million. While the settlement amount is less than one-sixth of the full amount of damages, it is a reasonable amount in the context of the plaintiffs’ incentive awards.