New York financial services firm settles time and attendance lawsuit, faces another

A New York-based financial firm settled a time and attendance lawsuit brought on by 428 employees alleging violations of the Fair Labor Standards Act for unpaid overtime. According to the New York Post, in September 2013, the company reached a $5.4 million settlement agreement with the plaintiffs and the case was closed March 11. Employees involved in the class-action suit will each receive approximately $12,600.

Legal action was taken after employees complained of working more than the standard eight hours in a day or 40 hours in week, but were not paid overtime. The company did not deny the allegations, but claimed that workers were classified under an FLSA "exempt" status that didn't require they be paid overtime.

According to the current FLSA guidelines, employees working under a professional or administrative status who earn a weekly salary greater than $455 qualify as exempt and are ineligible to receive overtime pay.

Interestingly, a federal judge in New York, recently classified call center employees under a New York Labor and FLSA status that gives them to right to initiate another time and attendance lawsuit at the same financial firm for unpaid overtime.

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