Overtime Pay for Bankers Is Often Due, But Mostly Denied to Employees

When Wells Fargo fired more than 5,000 bankers in the unauthorized account scandal, a spotlight was inadvertently cast on overtime pay for bankers.

For those not in the financial industry, you might be surprised to find out that many bank employees hold the title of assistant vice president. As “management,” these employees are not eligible for overtime. Or are they?

The truth is that job duties are more important than job titles when determining whether or not an employee should be paid hourly or by salary.

According to the Fair Labor Standards Act, a manager is a person who has the authority to hire and fire employees. Most bank “managers” do not have such authority.

Another type of employee who can be exempt from overtime is a professional whose position requires specialized education. While banks and other financial institutions try to misclassify employees as professionals, most require a high skill level, but not a specific degree or schooling that aligns them as a professional.

Overtime Pay for Bankers

Back in 2014, JPMorgan Chase business bankers Kevin Royer, Kris Henry and Mikhail Lerman took their employer to court alleging the trio had been bilked out of overtime pay. The court later certified it as a class action case.

Their job was to sell financial products and services to business customers, which required long work hours and the ability to respond to cell phone calls at virtually any time. Even though they often worked more than 40 hours a week, Chase bankers were paid for only 40 hours per week. They were paid salary plus commission, but there was no overtime pay for bankers.

Chase ultimately settled the case, and Chase’s business bankers in several states are set to gain $10 million in additional compensation.

Fair Labor Standards Act Is on Your Side

According to the Fair Labor Standards Act, employers are not allowed to retaliate against employees who file FLSA actions. Employees who are unfairly denied overtime pay are able to obtain double damages, plus attorney’s fees.

The FLSA workweek is set at seven consecutive days. Federal labor laws calculate overtime as time and a half when the hours worked within a week reach more than 40.

Many employees are simply misclassified as management on purpose by employers who do not wish to pay overtime. In fact, even salaried workers can be eligible for overtime pay when they have fluctuating hours or work as outside sales representatives.

Any employee in banking, mortgage lending or financial services who ends up working 50 to 60 hours per week, but is only paid for 40 hours per week, could have a claim because overtime pay for bankers is mandatory when the employee is not truly a manager.

If you have worked in the financial industry and feel you were due overtime pay for bankers that you did not receive, you could be eligible for compensation through a class action lawsuit.

Join a Free Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now