Merrill Settles Employee Misclassification Collective Action for $3.4M

In recent news, Merrill settled an employee misclassification collection action for $3.4 million.

The Case: Hill v. Merrill Lynch, Pierce, Fenner & Smith Incorporated

The Court: Circuit Court of the Fifteenth Judicial Circuit, Palm Beach County, Florida

The Case No.: 50-2022-CA-007445-XXXX-MB

The Plaintiff: Hill v. Merrill Lynch, Pierce, Fenner & Smith Incorporated

The plaintiffs in the case filed a collective action on behalf of Financial Solutions Advisors employed by Merrill between Aug. 3, 2020, and Aug. 10, 2022. The class action lawsuit alleged the company misclassified an entire class of employees as exempt from overtime laws, which resulted in lost wages. In the case, the plaintiffs claim the defendant encouraged their FSA employees to work over 40 hours per week but did not pay them the overtime pay they earned. They allegedly enacted a company-wide policy that classified all Merrill FSAs as exempt from federal overtime protections. The plaintiffs claim the defendant willfully misclassified FSAs as exempt, failed to record the time the FSAs worked, and failed to pay FSAs proper overtime wages as required by labor law.

The Defendant: Hill v. Merrill Lynch, Pierce, Fenner & Smith Incorporated

According to the class action, Merrill Lynch, Pierce, Fenner & Smith is one of the world's largest banks and brokerage firms. Also known simply as Merrill, the group is the investment and wealth management division of the well-known financial institution Bank of America. Merrill denies it violated the law and that FSAs were compensated correctly.

The Case: Hill v. Merrill Lynch, Pierce, Fenner & Smith Incorporated

Employee misclassification is common in today's workplaces, and rules about who is exempt or non-exempt and what types of work are eligible for overtime can vary depending on state laws. Merrill set up a fund of $3.4 million to resolve the misclassification and overtime class action. The $3.4 million settles the collective action lawsuit alleging the company violated the FLSA. The amount each class member receives is based on the number of weeks the employee worked during the applicable time period. Once a class member becomes part of the collective action in Hill v. Merrill Lynch, Pierce, Fenner & Smith Incorporated, they cannot sue Merrill for any claims relating to the lawsuit. Merrill denies the alleged employment law violations, stating that the settlement agreement avoids additional litigation expenses.

If you have questions about how to file a California class action lawsuit, please get in touch with Blumenthal Nordrehaug Bhowmik DeBlouw LLP. Experienced class action attorneys are ready to assist you in various law firm offices in San Diego, San Francisco, Sacramento, Los Angeles, Riverside, and Chicago.