JPMorgan Offers $5.7M for Underpaying FA Overtime
Current and former JPMorgan Chase & Co. advisors have been offered $5.7 million to cease a suit claiming the firm underpaid some FAs on overtime, Law360 reports.
Judge Laura Swain of the U.S. Southern District of New York was asked Friday to tentatively approve the settlement offered by JPMorgan to 1,056 plaintiffs.
The original suit had been filed in 2011 by Jeffrey Lloyd and Ellen Szymkiewicz claiming JPMorgan had violated state and federal overtime laws. The following June a similar case by Kenneth Ciullo was accepted by the court as related, writes Law360.
The legal news website reports that previously Swain had ruled JPMorgan could compel into arbitration any advisors who had signed any version of Chase’s arbitration agreement that was governed by American Arbitration Association rules. But FAs who had signed an alternate version governed by Finra were able to stay in the class action.
The suit contains different classes of plaintiffs for advisors in New York, New Jersey and California.
The proposed settlement comes after a discovery period described as "extensive" and an appeal to the Second Circuit, Law360 reports.
JPMorgan is one of a number of firms slapped with similar class action lawsuits involving overtime pay over the past few years. In June Morgan Stanley agreed to pay $6 million in four collective class action lawsuits alleging the firm failed to pay its trainees for overtime.