Financial services group Morgan Stanley has reached a nearly $5M settlement with its client services group concerning its alleged failure to pay workers overtime compensation. According to reports, the class action wage and hour lawsuit was filed on behalf of more than 800 current and former client associates. The associates were non-exempt employees, and hence entitled to overtime pay at a rate of one and one-half times their standard rate for all time worked over 40 hours in any workweek. While Morgan Stanley doesn’t admit any wrongdoing, associates will receive back pay and damages.
This lawsuit demonstrates that wage and hour violations can occur in any workplace. While the laws concerning minimum wage and overtime appear straightforward, in reality pay violations are frequent. If you have any wage and hour questions or believe that you have not received all the pay you are entitled to, consulting with an experienced Atlanta wage and hour attorney is important to ensure you receive the compensation you rightly deserve.
Often workers fail to receive all the pay they are entitled to as a result of their employers misclassifying them as “exempt” rather than “non-exempt.” According to the Fair Labor Standards Act (FLSA), all non-exempt workers must be paid overtime for time worked in excess of 40 hours in any workweek. However, exempt workers are not entitled to overtime pay – regardless of the number of hours spent on the job. “Exempt” workers are those who perform certain white-collar jobs or otherwise fit in to one of the FLSA exempt categories:
• Administrative (where your work directly relates to the management or general business operations)
• Executive (typically a high-level manager or someone who controls an important aspect of the business)
• Professional (your work is professional in nature and is predominantly intellectual, requiring the consistent exercise of discretion and judgment)
Because overtime pay can add significant sums of money to worker’s pay checks, ensuring that workers are correctly identified and classified – and paid the money they are due – is critical.
For more information or for assistance with any wage and hour question, please contact the top Georgia wage and hour lawyers at Buckley Beal LLP for an immediate, confidential consultation.