JPMorgan Chase will have to defend itself – again – against allegations it mis-classified assistant bank managers as exempt employees. The new case, Varghese v. JPMorgan Chase & Co, follows a $2.4 million class action settlement in 2013 (Lee et al. v. JPMorgan Chase & Co.).
A federal judge in U.S. District Court for the Southern District of New York approved the workers’ proposed class. Assistant branch managers from at least nine states claim that JPMorgan misclassified them as exempt from overtime pay under the Fair Labor Standards Act.
The workers showed that their working more than 40 hours per week without overtime compensation “reflected a company-wide policy,” meaning that there is a “class” of workers (not just the individuals bringing the suit), which means that it qualifies as a class action under the Fair Labor Standards Act.
Salaried workers often think that they are “exempt” from being paid overtime. This is only true if they make more than $455/week, and soon, on December 1, $913/week. If they make less, they must be paid overtime at 1.5 their normal hourly pay (their weekly salary calculated on a 40-hour week).
For more on classification and the upcoming overtime rule, see Final Rule: Overtime — Defining and Delimiting the Exemptions for Executive, Administrative, Professional, Outside Sales and Computer Employees under the Fair Labor Standards Act.