SAN FRANCISCO, CALIFORNIA (08/27/15) – As reported by the San Francisco Business Times, defendants Bank of America and its subsidiary, Landsafe Appraisal Services, Inc., backed off at the very last minute from a trial that was scheduled to start on August 31 by making a $36M offer to the plaintiffs it misclassified and owes overtime pay to. The $36M will resolve all claims for the 365 members of the class, contingent on court approval. The announcement of the proposed settlement was made by co-lead counsel for the plaintiffs, Bryan Schwartz.
In April of 2013, the original lawsuit was filed. It claimed that both Bank of America and its subsidiary Landsafe Appraisal Services miscategorized employees working as residential real property appraisers to categories such as “professional” or “administrative,” which would change their employment status to “exempt” versus “non-exempt.” Exempt employees are exempt from overtime pay, no matter how long they work. Since these appraisers worked from 6 am to 10 pm on a regular basis, this added up to a lot of money to be saved by the employers and to be forfeited by the employees.
The lawsuit gained nationwide class action status as per the Fair Labor Standards Act (“FMLA”) in December of 2013, and gained class action status in California based on the California Labor Code in June of 2014.
Prior to this current development, a portion of the nationwide case was settled for $5.8M.
If this settlement offer is approved, the full payout will be almost $42M.
Do you think you’ve been misclassified as an exempt employee instead of a non-exempt employee? Besides depriving an employee of overtime pay, misclassification of this sort can also cause employees to be forced to constantly work excessive hours, which seriously neglects their quality of life, and with absolutely no recourse – you work as much as your company tells you to or you get fired. If you are not a manager and think you have been misclassified as exempt, seek out an employment attorney to find out for sure and to fight for you if you are illegally misclassified!