Merrill Lynch financial advisor wages $1.375M class action settlement

Merrill Lynch agreed to a $1.375 million settlement to resolve claims it underpaid California financial advisors. 

The settlement benefits employees of Merrill Lynch in California who worked as Client Associates between Aug. 26, 2016, and May 12, 2022, with the job titles “Registered Client Associate,” “Registered Senior Client Associate,” “Investment Associate,” “Private Wealth Associate,” “Sales Assistant,” “Sales Associate,” “Account Associate,” “Brokerage Associate” or any other non-exempt administrative support position.

Merrill Lynch is an investment management company that employs advisors and other associates to work with customers in developing personalized retirement and investment plans. Over 13,000 advisors work with Merrill Lynch, according to the company’s website.

However, Merrill Lynch may have taken advantage of its California advisors by failing to properly pay wages. 

A 2020 class action lawsuit against Merrill Lynch claims the investment company failed to pay minimum wage and overtime wages and failed to give other wage-related benefits such as accurate wage statements.

The plaintiff in the case brings his allegations under various California laws including the state’s labor laws, the California Unfair Competition Law and the California Private Attorneys General Act (PAGA), which allows workers to bring labor claims on behalf of the state’s labor authority.

Merrill Lynch hasn’t admitted any wrongdoing and contends it has complied with California wage-and-hour laws at all times. However, the company agreed to a $1.375 million class action lawsuit settlement to resolve these allegations. 

Under the terms of the settlement, class members can collect a cash payment based on the number of hours they worked during the class period. Individuals who worked a greater-than-average number of hours will be eligible for a larger share of the settlement.

Of the settlement fund, $100,000 will be allocated to PAGA claims. This portion of the settlement results in some payments to eligible class members and a large penalty paid to California’s Labor and Workforce Development Agency. 

Two-thirds of each settlement payment will be considered ordinary income, interest and penalties for tax purposes. The remaining third of each payment will be considered wages. 

Class members are responsible for paying any taxes on settlement payments and handling the tax consequences of such payments. 

The deadline for exclusion and objection is July 25, 2022. 

The final approval hearing for the Merrill Lynch settlement is scheduled for Oct. 14, 2022. 

Class members have until July 25, 2022, to dispute their proposed settlement payment. 

No claim form is required to benefit from the settlement.

Who’s Eligible

The settlement benefits employees of Merrill Lynch in California who worked as Client Associates between Aug. 26, 2016, and May 12, 2022, with the job titles “Registered Client Associate,” “Registered Senior Client Associate,” “Investment Associate,” “Private Wealth Associate,” “Sales Assistant,” “Sales Associate,” “Account Associate,” “Brokerage Associate” or any other non-exempt administrative support position.

Potential Award

Varies

Proof of Purchase

No proof of purchase applicable

Exclusion and Objection Deadline

07/25/2022

Case Name

Scrooc v Merrill Lynch Pierce Feener and Smith Incorporated, CIV 2001671, in the Superior Court of the State of California County of Marin

Final Hearing

10/14/2022

Settlement Website

ScroocSettlement.com

Claims Administrator

Scrooc v Merrill Lynch Pierce Feener and Smith Incorporated
c/o Settlement Administrator
P.O. Box 26170
Santa Ana, CA 92799
888-369-3792

Class Counsel

Edward J Wynne
WYNNE LAW FIRM

James F Clapp
CLAPP & LAUINGER LLP

Defense Counsel

Adam P Kohsweeney
Racquel B Martin
O’MELVENY & MYERS LLP