Merrill Lynch Agrees to $4.9 Million Settlement in Overtime Pay Dispute
From the desk of Jim Eccleston at ÍøÆسԹÏ
Merrill Lynch will pay $4.9 million to resolve a class action lawsuit filed by current and former salaried Financial Solutions Advisors (FSAs) who alleged the firm wrongfully denied them overtime pay. As reported by AdvisorHub, a Florida state judge recently approved the settlement, which will compensate eligible FSAs who worked at the firm over the past three years.
FSAs, who typically include advisor trainees and those working with Merrill Edge’s mass affluent clients, claimed the firm failed to pay them for overtime hours worked beyond their 40-hour workweeks.
The settlement, described in court filings as “a fair, adequate, and reasonable compromise,” allows class members to opt out and pursue individual claims if they choose. Any unclaimed funds will be returned to Merrill, and Grosch’s attorneys are set to receive one-third of the settlement amount as fees.
AdvisorHub reports that while overtime lawsuits are rare among traditional advisors compensated through fees and commissions, they are more common among salaried employees, such as FSAs and client associates. This is not the first such claim Merrill has faced. In 2016, the firm paid $14 million to settle allegations involving 9,500 financial advisor trainees, and in 2019, it paid $550,000 to resolve claims from compliance personnel who worked overtime without pay.
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