While typically paid commission-only, stock and commodity brokers may be entitled to overtime pay under State and Federal laws.
Stock and commodity brokers typically work more than the required 8 hours a day, starting from as early as 6:00 a.m. and working after 5:00 p.m. or on weekends. These overtime hours quickly add up and some employers such as AG Edwards, Ameritrade, Amex Securities, Bear Stearns, E-Trade, Goldman Sachs, Legg Mason, Raymond James, Oppenheimer and T-Rowe Price, allegedly, may simply deny the overtime hours, or misclassify their employees to avoid paying costly overtime wages.
Brokers may qualify for overtime pay if they do not meet the mandated duty and salary test requirements. These employees are non-exempt and may be paid hourly, salary, or commission-only. Stock brokers may also be titled stock trader, futures trader, financial planner, financial consultant, financial advisor, investment advisor, or portfolio manager.
While Federal overtime law exempts some commissioned sales staff from overtime pay, such as those in retail businesses, financial institutions are not treated the same. California state labor law also provides additional protection for stock and commodity brokers, providing an avenue for unpaid overtime wages.
Stock Broker Unpaid Overtime in the NewsAug-07-06:: Broker overtime case against A.G. Edwards given the OK to proceed. Judge decides that brokers are not exempt from overtime wages. [MARKETWATCH]
May-30-06: Validity of paying stock brokers overtime called into question. [MARKET WATCH]
May-29-06: Lawsuit against Oppenheimer alleges Stock Brokers may be entitled to Overtime Pay
May-23-06: Citigroup's Smith Barney brokerage unit agrees to settle brokers unpaid overtime claims for $98 million. [
Aug-23-05: Merrill Lynch will pay up to $37 million to approximately 3,250 of its California stock brokers to settle claims that it failed to pay overtime wages. USB settled a national overtime lawsuit by paying $89 million.