JPMorgan Chase recently opened up their checkbooks to a group of assistant branch managers that work for the multinational banking and financial services company, which is headquartered in New York City. The lawsuit alleges that the assistant branch managers were misclassified as exempt from the overtime protections of the Fair Labor Standards Act (FLSA).
Many of the class members will receive $3,000.00 each for their overtime claims that date back to 2012. Roughly 5,400 employees were included in the class. JP Morgan Chase stated the employees were getting a great deal, seeing as many of the class members rarely worked overtime hours.
The FLSA requires that all non-exempt employees be paid at an overtime premium of one and one half their regular hourly rate for any hours worked over 40 in a single workweek. Failure to comply with the Act carries penalties for back wages, attorney fees and costs, and potentially liquidated (double) damages.
JPMorgan Chase also pointed out that branches are seldom open for more than 40 hours in a week, and that number is offset by breaks and lunches.
Nonetheless, JPMorgan Chase recognized the risks associated with litigating the case, particularly whether they had misclassified the assistant branch managers as exempt, so they agreed to the settle the employees’ claims.
The cases are Taylor et al. v. JPMorgan Chase & Co. et al., case number 14-cv-01718, and Varghese v. JPMorgan Chase & Co. et al., case number 1:15-cv-03023, in the U.S. District Court for the Southern District of New York.
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