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US Bank Settles Wage Claim Class Action for $1.9 Million

Most overtime lawsuits deal with allegations of violating the federal Fair Labor Standards Act (FLSA), which states that all hourly employees working within the United States are entitled to one and one-half times their normal hourly rate for all time that they spend working after eight hours a day or forty hours a week. However, in addition to the FLSA, most states have their own labor laws regulating things like minimum wage and overtime within their borders.

California, for example, requires all of its employers to provide their workers with meal and rest breaks throughout the day. Under the law, for every four hours that an employee spends working, she gets one paid rest break lasting at least ten minutes. For every five hours worked, the employee is entitled to an unpaid meal break of at least half an hour. For every day that an employee does not take one of these breaks, for any reason, the law states that she must be paid one hour’s worth of wages, in addition to all wages earned that day.

According to a recent class action overtime lawsuit filed against US Bank, the Bank allegedly failed to make sure that its In-Store Bankers took all of the meal and rest breaks that California labor law grants them. The class action also alleges that, in the event that an in-store banker missed a break, US Bank did not provide them with the proper compensation, as required by California law. US Bank denies all of these claims and takes the position it complied with the law.

State law also requires employers to provide workers with all wages earned – including straight time, overtime, and any unpaid sick and vacation time – within 72 hours of that worker’s termination of employment. If the worker gives notice at least 72 hours prior to her termination, then all of her wages are due upon termination. According to the overtime class action lawsuit, US Bank also allegedly failed to provide workers with all of their wages within the required timeline.

California labor law also requires employers to provide workers with sufficient seating. This means that no employee should be made to stand on their feet all day and employees need to be sure to provide enough seating to accommodate all of their employees. The recent lawsuit alleges that US Bank also failed to provide employees with adequate seating while they were at work.

US Bank continues to deny all of the allegations, but has agreed to settle the case in order to avoid a lengthy and expensive court battle. The parties have agreed on a settlement of $1.9 million, which will be distributed among all of the class members, after attorneys’ fees and costs, and the lead plaintiff’s incentive award. The class will consist of all current and former employees who worked for US Bank in the state of California as an In-Store Banker or a Senior In-Store Banker from September 30, 2010 to February 6, 2014.

It is estimated that each employee will receive approximately $7.6 for each week that they worked as an In-Store Banker or Senior In-Store Banker during the Class Period. Although this may not be enough to fully compensate each employee for the amount of time that they spent working for US Bank, it is a compromise that allows the plaintiffs to collect a settlement, rather than facing the uncertainty of a court’s decision. Likewise, the bank gets to save face by paying off the lawsuit without admitting to having committed any illegal acts.The attorneys at Chicago Overtime Law Center have decades of experience litigating wage and hour cases, including overtime, vacation pay, meal breaks, and tips. We have offices conveniently located in Oak Brook and Chicago, Illinois. Contact the Berwyn, Oak Park, Melrose Park and Cicero unpaid overtime lawyers and attorneys at the Chicago Overtime Law Center today at 312-869-4095. We are looking to represent loan and mortgage brokers who have not been paid overtime and have been mis-classified as managers.