- Wednesday, 18 August 2010 18:06
Wells Fargo Settles Multiple OT Lawsuits
By Sarah Pierce
(LEGAFI)Â -- Wells Fargo just canâ€™t seem to keep its fingers out of the employee cookie jar. The bank has agreed to settle several collective and class action lawsuits this year, totaling nearly $28 million, to disgruntled employees who claim they were stiffed on overtime pay and wages.
The first lawsuit, Wells Fargo Home Mortgage Overtime Pay Litigation, was filed by nearly 4,570 home mortgage loan consultants who claim they were misclassified as exempt from overtime wage requirements. Wells Fargo agreed to pay $20 million to settle the lawsuit in July. The lawsuit includes all current and former home mortgage consultants who worked for Wells Fargo between February 10, 2001 and July 20, 2010. The $20 million settlement will be divided among employees based on their length of tenure and compensation, with an average payout of roughly $4,375, or $250 for each month worked. Employees who worked the entire class period are expected to receive about $20,000.
In a second very similar lawsuit, Wells Fargo Loan Processor Overtime Pay Litigation, over 3,000 loan processors claimed Wells Fargo paid them for 86.67 hours every semi-monthly pay period, regardless of the hours they actually worked. They also said managers sometimes failed to approve overtime recorded in the electronic payroll system, which resulted in failure to receive overtime. The employees also alleged meal and rest period violations and other claims under California law. Wells Fargo agreed to settle the lawsuit for $6.6 million, which was granted preliminary approval and is set for a final approval hearing in November.
The final lawsuit, Russell v. Wells Fargo and Co., was filed by approximately 110 computer engineers, who also claim they were misclassified as exempt employees and didnâ€™t receive overtime pay. Wells Fargo agreed to pay over $850,000 to settle the collective and class action overtime lawsuit, which was given final approval by a California federal district court in June.
With so many wage and overtime lawsuits, we wonder if Wells Fargo will finally institute better policies to ensure its employees are properly compensated. You can find a copy of two of the lawsuits here and here.
Updated August 18th, 2010
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