Merrill Lynch has reached a $12 million settlement, ending an unpaid overtime class action brought by their employees who provided support services to brokers.
According to the lawsuit, Merrill Lynch client associates were allegedly paid overtime based on an incorrect and low regular rate of pay and that Merrill Lynch failed to properly record and account for all overtime hours they worked. Client associates typically handle paperwork for brokers.
The $12 million fund will provide financial recovery for client associates who worked for Merrill Lynch between 2010 and 2012. The time period is longer for client associates who were employed in California, New York, Maryland and Washington.
In California, the general overtime rules are that nonexempt employees, shall not be employed more than 8 hours a day or more than 40 hours in a week unless he or she receives 1 1/2 times his or her regular rate of pay for all hours worked over eight hours in any day and over 40 hours in the week.
Overtime is based on the regular rate of pay, which is the compensation an employee normally earns for the work they have performed. The regular rate of pay includes a number of different kinds of remuneration, such as hourly earnings, salary, piecework earnings, and commissions. In no case may the regular rate of pay be less than the minimum wage, which in California is currently $8.00 per hour.
If your employer owes you overtime pay in violation of California Labor Laws, please call California Employment Attorney Todd M. Friedman at (877) 449-8898 for a free consultation.