First Republic is based in California, according to The New Haven Register (11/29/12) and therefore was found to have violated California overtime law when it incorrectly classified various employees as exempt from qualifying for overtime.
The indiscretion violated federal overtime laws as well. An investigation by the Wage and Hour Division of the US Department of Labor led to the allegations, and the resulting settlement, according to the report.
According to various federal and state statutes, certain jobs qualify for overtime pay when a certain number of hours are exceeded in a day, or a certain number of days within the standard work week. Others—such as salaried jobs in certain administrative, professional or managerial sectors, do not. There are rigid formulas that govern which jobs qualify, and those that do not.
In the past, many employers have done an end run around overtime laws by misclassifying employees as ineligible for overtime pay, when indeed they are. Many employees have taken their employers to court over the issue, and to claim unpaid overtime as well as additional compensation.
READ MORE CALIFORNIA OVERTIME LEGAL NEWS
According to the report, First Republic was found to have been in violation of provisions governing overtime and record keeping within the Fair Labor Standards Act.
"It is essential that employers take the time to carefully assess the FLSA classification of their work force," Secretary of Labor Hilda Solis said in a written statement with regard to the overtime pay laws investigation. "As this investigation demonstrates, improper classification results in improper wages and causes workers real economic harm."