LOS ANGELES — Commercial real estate appraisers with JPMorgan Chase & Co. filed a putative class action overtime pay lawsuit in California federal court last year. The appraisers claim the financial giant misclassified commercial real estate appraisers as exempt from overtime under the Fair Labor Standards Act (FLSA) and California state laws. A California federal judge recently granted preliminary approval to a $2.4 million settlement, which is expected to end the dispute.
The Claim’s Path
In March 2013, Mark Thompson and Kenneth Lee filed the putative class action. They claimed they and similarly situated commercial real estate appraisers were misclassified and wrongfully denied overtime pay when they worked more than 40 hours a week. The parties stipulated to arbitrate the dispute in August 2013. But, there was some dispute and confusion over whether or not a class wide arbitration was possible due to the different arbitration agreements employees signed.
By August 2013 there were 158 appraisers in the putative class action. Of the 158, 38 appraisers had signed arbitration agreements which were silent on whether or not they could participate in class wide arbitration. And 99 had signed an arbitration agreement which waived their right to class wide arbitration of wage disputes. Waiving class arbitration means each appraiser would have to file and arbitrate a wage complaint individually. This could result in varying outcomes and could discourage employees from bringing claims in the first place.
Regardless of the class wide arbitration clause, 137 of the 158 appraisers are subject to arbitration. But, not all of the appraisers are required to arbitrate. This led the parties to ask the court to decide whether the court or an arbitrator should determine whether the arbitration agreements would prevent class arbitration.
In November 2013, a district court judge ruled the determination was within the scope of the arbitrator’s purview. Based on the court’s decision, the lawsuit was dismissed and the employees filed arbitration claims. By July of this year, the appraiser’s claims went to mediation. In late October, the parties submitted the settlement for approval. The settlement provides roughly $9,500 for each of the 158 appraisers. And JPMorgan agrees to reclassify some of the commercial real estate appraisers as non-exempt.
Arbitration
Like lawsuits filed in state or federal courts, arbitration can be an individual claim or a class wide claim. Employers are increasingly requiring employees to sign agreements which waive class wide arbitration. In this case, the class wide waivers signed by 99 appraisers could have prevented them from taking part in a class wide arbitration. Fortunately, the claims were resolved in mediation and the parties agreed the settlement would include all 158 appraisers in the initial putative class action.
If you feel you have been misclassified and denied proper wages and overtime, you do not need to wait for others to bring their claims. But it is important to know whether you have signed an arbitration agreement which waives class wide claims. Our knowledgeable team of overtime pay lawyers can help you evaluate and decide the best path for your situation. Call us today at (855) 754-2795 to discuss your situation. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement.