Chase Bank to Settle California Labor Lawsuit

Santa Ana, CA JPMorgan Chase Bank will reportedly settle a California labor lawsuit that alleged the bank violated federal and California labor laws, as well as labor laws in 11 other states by forcing employees to work off the clock. According to reports, approximately 145,000 current and former employees are affected by the settlement.

Legal Newsline (10/23/14) reports that employees of Chase Bank in 12 states were part of the lawsuit. They alleged they were not paid properly for work, including overtime, because not all their hours were counted as worked and because they were not given proper meal or rest breaks. Chase allegedly did not allow employees to record all hours worked, and/or erased or modified recorded hours.

Other allegations included not properly reimbursing employees for all incurred business expenses, not providing proper wage statements and not paying wages timely. The class period varied based on the state, but in California, employees who worked with Chase from February 17, 2007 and on as personal bankers, tellers or ABM trainees were eligible to join the lawsuit.

The lawsuit alleged Chase’s policy was to “deny earned wages, including overtime pay, to its non-exempt hourly employees at its retail branch facilities throughout the country.” The lawsuit also alleged Chase employees were required to perform work-related activities during unpaid breaks.

“The net effect of Chase’s policy and practice, instituted and approved by company managers, is that Chase willfully fails to pay overtime compensation and willfully fails to keep accurate time records, in order to save payroll costs,” the lawsuit claimed.

Other states involved in the lawsuit were Arizona, Florida, Illinois, Kentucky, Louisiana, Michigan, New York, Ohio, Texas, Washington and Wisconsin. The lawsuit also alleged violations of the Fair Labor Standards Act.

According to court documents filed in the Motion for Preliminary Approval of Settlement, the amount of the settlement is up to $12 million, including $222,500 to be shared by the named plaintiffs of the class. Court documents note that the settlement was negotiated with the help of a mediator.

The settlement still requires court approval.

The Chase lawsuit was Hightower v. JPMorgan, case number 2:11-cv-01802, U.S. District Court, Central District of California.