Wells Fargo Agrees to $4M Unpaid Overtime Class Action Settlement

Wells Fargo has reached a $4 million class action settlement with thousands of current and former client associates who alleged violations of the Fair Labor Standards Act (FLSA), including unpaid overtime and unpaid wages. If approved, the class action settlement could mean hundreds of dollars in compensation for each Class Member.

According to the original class action lawsuit, filed by Michelle Lindsay, the financial services company paid employees only for hours worked according to a weekly schedule, but failed to cover any overtime for workers who were not salaried. Wells Fargo argued that the practice would have to be assessed for each of the 800 branches around the country, but the judge demurred, allowing employees to continue with their unpaid overtime lawsuit.

Through mediation, the company and the putative class came to a settlement agreement that would total $4 million. With attorneys’ fees and other ancillary costs, up to $2.6 million is available to workers who opt into the settlement. If all covered client associates file a valid claim, the average payout would be roughly $770 per claimant. 

The class covers all Wells Fargo client associates who worked between April 29, 2010 and August 2, 2013 and have documentation regarding alleged weekly hours they worked above the 40-hour limit for regular pay. A claims administrator has not been named as yet, so former and current employees should watch for upcoming documentation. They will have 45 days from the first notice to decide whether or not to opt in to the Wells Fargo overtime settlement, do nothing, or file their own complaint.

Unlike other class action settlements, those involving FLSA violations do not limit the ability of other plaintiffs to begin their own legal proceedings with the assistance of an unpaid overtime lawyer.

The Wells Fargo Overtime Class Action Lawsuit Settlement is Michelle R. Lindsay, et al. v. Wells Fargo Advisors LLC, et al., Case No. 12-cv-00577, U.S. District Court, Eastern District of Missouri.