Prudential Agrees to $12.5 Million Unpaid Overtime Settlement

Prudential Financial Inc. has agreed to an unpaid overtime settlement in the amount of $12.5 million to resolve claims in a wage and hour class action lawsuit.

The allegations in the overtime lawsuit claimed that financial representatives for Prudential had their pay inappropriately docked to cover work expenses and they worked overtime hours that they were not paid for, according to the unpaid overtime settlement.

The Prudential unpaid overtime settlement was reached after 11 months of negotiation spanning mediation sessions during May 2016 and September 2016. The unpaid overtime settlement will resolve claims made by Prudential employees working in a total of 12 states. The litigation has been going on for more than 10 years.

“After more than a decade, we have decided to resolve this matter through a settlement that is in the best interest of all involved,” Prudential said in a statement to Law360 regarding its unpaid overtime settlement. “We value our employees, agents and partners and look forward to putting this matter behind us.”

The wage and hour lawsuit was originally filed back in September 2006 by Prudential financial representatives who stated that they were misclassified as independent contractors. As a result, they accused Prudential of improperly docking their pay for using physical office space, the work of assistants, insurance, and office supplies. Additionally, the financial representatives stated that they were not paid overtime wages for the extra time that they worked.

The plaintiffs brought forth allegations of violations of the federal Fair Labor Standards Act as well as allegations that state law was violated as their contracts with Prudential were breached.

In 2013, the plaintiffs’ motion for class certification was rejected. After modifying their claims, the judge found in February 2015 that the issues that had prevented the class certification two years prior had been resolved. The plaintiffs narrowed their number of proposed subclasses from 18 to 8. But the judge declined to certify the proposed overtime classes, citing individualized issues and a deficient report by an expert witness.

Prudential reached an unpaid overtime settlement in January 2012 for a separate class action lawsuit that alleged Fair Labor Standards Act claims. The plaintiffs in this lawsuit stated that they were forced to work off the clock without pay. The Maine-based disability claims managers alleged that Prudential owed roughly $1 million in the unpaid overtime settlement.

The plaintiffs are represented by Kenneth K. Lehc of Winne Banta Hetherington Basralian & Kahn PC, John Halebian of Lovell Stewaer Halebian Jacobson LLP, Peter A. Muhic of Kessler Topaz Meltzer & Check LLP, Jerry K. Cimmet and John M. Kelson.

The Prudential Unpaid Overtime Class Action Lawsuit is Jeffrey Bouder v. Prudential Financial Inc., et al., Case No. 2:06-cv-04259, in the U.S. District Court for the District of New Jersey.

UPDATE: September 2017, the Prudential unpaid overtime class action settlement is now open. Click here to file a claim.

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