Bank of America has agreed to a $4.28 million class action settlement to resolve claims it failed to pay out vacation time to employees in California, Illinois and New York.
The Bank of America settlement benefits individuals who were formerly employed by Bank of America in California, Illinois and/or New York who had a positive vacation balance at the time of separation from employment and who did not receive any payout for accrued but unused vacation at separation of employment.
Bank of America is a financial institution that offers banking, investing, asset management and other financial services to consumers, businesses and institutions.
According to a class action lawsuit, Bank of America violated California, Illinois and New York laws by failing to pay out vacation time when employees left the company.
California law requires employers to pay out vacation time when an employee leaves the company. Similarly, Illinois law requires employers to pay out vacation time upon termination. New York law also requires employers to pay out vacation time, although the state does not require employers to offer vacation time in the first place.
Bank of America has not admitted any wrongdoing but agreed to pay a $4.28 million class action settlement to resolve the vacation pay class action lawsuit.
Under the terms of the Bank of America settlement, class members can receive a cash payment based on the amount of vacation time they accrued while working for the company.
Class members who accrued a larger amount of vacation time will receive a larger share of the net settlement fund. Exact payment amounts will vary.
Half of each settlement payment will be subject to deductions for taxes and withholdings, resulting in a W-2. The other half of each payment will be reported on an IRS Form 1099. Class members may wish to consult with a tax professional regarding the tax consequences of accepting a settlement payment.
The deadline for exclusion and objection is Nov. 27, 2026.
The final approval hearing for the Bank of America vacation pay settlement is scheduled for Dec. 17, 2026.
No claim form is required to benefit from the settlement. Class members who do not exclude themselves will automatically receive settlement benefits.
Who’s Eligible
The class action settlement benefits former Bank of America employees who worked in California, Illinois and/or New York and had a positive vacation balance at the time of their separation from employment and who did not receive a payout for accrued but unused vacation at the time of their separation from employment.
Potential Award
Varies
Proof of Purchase
No claim form is required to claim benefits.
Exclusion and Objection Deadline
11/27/2026
Case Name
Nguyen, et al. v. Bank of America N.A., Case No. 5:23-cv-04999-PCP, in the U.S. District Court for the Northern District of California
Final Hearing
12/17/2026
Settlement Website
Claims Administrator
Unused Vacation Settlement Administrator
P.O. Box 2004
Chanhassen, MN 55317-2004
[email protected]
866-983-3173
Class Counsel
George A. Hanson
Alexander T. Ricke
Caleb J. Wagner
STUEVE SIEGEL HANSON LLP
Defense Counsel
Adam P. KohSweeney
O’MELVENY & MYERS LLP
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