The settlement address claims made by assistant branch managers that Chase misclassified them as exempt from overtime, in violation of federal and state employment laws.
There are four classes of plaintiffs, one which brings claims under the Fair Labor Standards Act (FLSA), and three putative classes, which claim violations of New York, Connecticut and Illinois laws respectively. Under the proposed deal, plaintiffs should receive an average of more than $3,000 per class member, in respect of unpaid overtime dating back to 2012. The deal covers approximately 5,400 employees.
The class action was filed in March 2014 and certified in September 2016. The putative classes filed a lawsuit in April 2015 after attempting to negotiate directly with the bank, according to the agreement. The two lawsuits were eventually consolidated by the court, following certification of the FLSA class.
“Given all the risks plaintiffs faced (obtaining class certification, maintaining collective action certification, defeating the class and collective action arbitration waivers, winning liability, proving damages, winning the appeal, etc.) and recognizing that plaintiffs did not work overtime in multiple weeks per year when they took time off or when there were bank holidays, an average gross settlement of about $3,086 is reasonable in this highly-contested matter,” the proposed settlement agreement states.
The cases are Taylor et al. v. JPMorgan Chase & Co. et al., case number 14-cv-01718, and Varghese v. JPMorgan Chase & Co. et al., case number 1:15-cv-03023, in the U.S. District Court for the Southern District of New York.