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LAWSUITS NEWS & LEGAL INFORMATION

Charles Schwab Agrees $3.8M Unpaid Overtime Class Action Settlement


This is a settlement for the Employment lawsuit.

Los Angeles, CA: A $3.8 million settlement has been approved in the employment class action lawsuit pending against Charles Schwab & Co. The unpaid overtime lawsuit represents a potential class of financial consultants who allege they were misclassified and subsequently denied overtime.

The lawsuit claims Charles Schwab & Co violated the Fair Labor Standards Act by classifying its international CDT financial consultants and associate financial consultants as exempt from overtime pay. They are responsible for cross-selling financial products to existing brokerage and banking customers.

According to the complaint, the consultants alleged that they did not fall under any federal or California exemptions to overtime laws. They allege that they were encouraged by the defendant "to work beyond their scheduled shifts without compensation, failing to allow them to record overtime hours they worked and failing to compensate them for overtime hours they worked,"according to the complaint.

Charles Schwab agreed to settle the complaint just days after it was filed. According to the terms of the settlement two thirds of the funds will be distributed among hundreds of employees working as financial consultants in Charles Schwab call centers around the country. The settlement covers work performed between November 2009 and February 2014, or in the case of the international consultants, between November 2010 and February 2014.

Named plaintiffs Dana Aboud, William Hicks, Michael Porowski and Albert Schweizer will each receive $7,500 as compensation for their part in the unpaid overtime class action.

The case is Aboud et al. v. Charles Schwab & Co. Inc., case number 1:14-cv-02712, in the U.S. District Court for the Southern District of New York.

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Published on Nov-7-14


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