The FLSA, or Fair Labor Standards Act, sets forth overtime pay mandates for nonexempt employees. Under the law, employers must pay nonexempt employees one and a half times their hourly wage for each hour over 40 hours in a workweek.
Wells Fargo, the fourth largest bank in the U.S., has come under scrutiny in recent news for allegedly failing to pay mandated overtime to certain employees.
Failure to pay overtime
The entity is facing a class action lawsuit, which alleges that certain RTAs, or Registered Client Associates, working for the bank were not provided the overtime pay as required under federal law. One employee located in Orlando asserts that Wells Fargo did so “knowingly, willingly or with reckless disregard” for their rights.
Past wage and hour violations
This is not the first time that Wells Fargo has faced allegations for wage and hour violations. In 2021, Wells Fargo paid out roughly $96 million to settle claims that alleged Home Mortgage Consultants in California were not compensated appropriately under the commission-based pay structure. In 2020, the bank settled overtime pay claims in a $35 million class action lawsuit that involved nearly 9,000 employees.
A hopeful deterrent
Although alarming, Wells Fargo’s continuous brushes with the law are not a common occurrence. Many banks and other entities that employ workers all across the country follow the law and pay rightfully owed overtime pay. However, such instances reflect the ability of employees, who believe they were wronged and feel as though they may not have any recourse, to obtain the pay they are lawfully owed. These cases also could provide a deterrent for employers considering skirting wage and hour rules, and a compelling reason to ensure compliance with the applicable wage laws.