$8.3M JPMorgan Chase Overtime Lawsuit Settlement Reached in California

A hefty $8.3 million settlement will be paid in a JPMorgan Chase overtime lawsuit settlement to a Class of California assistant bank managers who claim they were treated as non-exempt workers.

Located in New York, JPMorgan Chase is a large, worldwide banking and financial company. It was formed in 2000 when J.P. Morgan merged with Chase Manhattan and is currently the largest bank in the United States. It is the sixth largest bank in the world by assets and is among the most valuable companies in the world.

Recently, however, JPMorgan Chase has been hit with an employee misclassification class action lawsuit filed by a Class of assistant bank managers. They claim they were misclassified as exempt workers, meaning workers that are paid a salary rather than by the hour, when they should have been classified as non-exempt workers because of what their jobs required.

Generally, a non-exempt worker is a worker who is paid by the hour and is eligible for overtime pay as well as well as rest and meal breaks. Federal and state regulations obligate employers to treat non-exempt workers in certain ways and pay them fairly for time spent doing work-related tasks.

The assistant bank managers claim that they were given job responsibilities of bank tellers and did not have true managerial duties. As such, the managers argued they should have been classified as non-exempt.

This JPMorgan Chase overtime lawsuit settlement agreement was reached recently to resolve the claims of a class of about 2,000 workers, all who claim the company denied to pay them overtime.

The $8.3 million will be divided between attorneys and class members. Attorneys’ fees will be paid in the amount of $2.8 million and the remaining $5.3 million will be divided among the 2,000 class members.

Law360 reports that this JPMorgan Chase lawsuit settlement was reached only after several months of negotiations. The case was stayed at the end of 2016 when both the Class of assistant managers and JPMorgan Chase entered mediation.

In their bid for the JPMorgan Chase lawsuit settlement’s early approval, the Class Members alleged that the proposed settlement is “fair, reasonable and adequate and that the standards for certification of the proposed class in the context of a settlement are satisfied.”

The $8.3 million JPMorgan Chase lawsuit settlement is only a portion of a much larger deal for $25 million. This larger JPMorgan Chase lawsuit settlement spans three different cases in New York and California. Last May, this settlement agreement was reached and the smaller details of each separate case were decided upon more recently.

For the cases in New York, Law360 reports, JPMorgan Chase resolved the lawsuits for $16.7 million. These lawsuits alleged similar violations of state labor laws and federal laws including the Fair Labor Standards Act (FLSA).

These New York lawsuits affect about JPMorgan Chase 5,400 workers who claim they were not paid proper overtime for the work they did. Each member of these Classes is expected to receive about $3,000.

The JPMorgan Chase Overtime Lawsuit is Case No. 2:15-cv-07728, in the U.S.District Court for the Central District of California.

UPDATE: May 2018, the California JPMorgan Chase wage & hour class action settlement is now open. Click here to file a claim.

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