ST. LOUIS — Account executives for a Wells Fargo affiliate, Wells Fargo Insurance Services USA Inc., have reached a tentative settlement with the company in their putative overtime pay class action. In their lawsuit the account executives allege the company wrongfully misclassified their positions and denied them overtime compensation when they worked more than 40 hours in a workweek in violation of the Fair Labor Standards Act (FLSA). The $2 million settlement is intended to resolve the claims of the class members, but without Wells Fargo admitting to any improper classifications or wage violations.
The Account Executives’ Claim
The account executives filed their initial lawsuit in July 2013 in California state court seeking nearly $14 million in damages. The lawsuit was later removed to federal court. In the lawsuit the account executives claim the tasks they performed were mundane day-to-day tasks assisting sales employees to sell Wells Fargo products and their primary responsibilities did not qualify or meet the requirements for any of the overtime exemptions under state or federal labor laws. Additionally, they claimed they were not paid for missed meal and rest breaks. As such, the account executives believe they were entitled to not only compensation for the missed meal breaks, but for the overtime hours they worked.
Wells Fargo’s Response
Wells Fargo responded to the account executives’ claims arguing that the employees were exempt under both state and federal exemptions. The company based its arguments on an advisory opinion issued by the Department of Labor in 2009 which addressed employee positions similar to that of the account executives. In the advisory opinion, the account executives could potentially qualify under the administrative exemption or the outside sales exemption. The advisory opinion is based on the assumption that an individual analysis of each of the account executives’ positions was performed and their responsibilities met the conditions stated in the opinion. Wells Fargo claimed the account executives were tasked with exempt responsibilities which required discretion and independent judgement directly related to the management of Wells Fargo, and therefore were exempt under the administrative exemption.
The Settlement
In the settlement, Wells Fargo does not admit to or deny any of the allegations. The settlement amount is significantly less than was initially sought, but it factors in the uncertainty of continued litigation and the unpredictability of jury verdicts. And nearly 500 current and former account executives who are working or have worked for the company at any time between July 2009 and December 2014 are included in the settlement.
If you believe your employer has misclassified you and is not compensating you for all of the hours you work or the overtime you have performed, you may have a wage or overtime pay claim. Our experienced team of overtime pay lawyers can be reached at (855) 754-2795. Or you may complete our Free Unpaid Overtime Case Review form and our legal team will evaluate your claim. If we accept your case, we will represent you under our No Fee Promise.