Merrill Lynch has agreed to pay $4.9 million to settle a class action lawsuit brought by a former advisor in Florida who alleged she and certain other colleagues were not paid overtime compensation to which they were due.
Case documents show the fund is to be distributed to financial solutions advisors, or FSAs, employed in various ways by Merrill Lynch over the past three years, including as trainees.
The lawsuit was filed in Broward County, Florida, by Florence Grosch, a former Merrill financial advisor. In a complaint filed early in December, Grosch alleged that Merrill did not pay for all the overtime the FSAs and trainees logged beyond their stipulated 40-hour workweeks.
Merrill Lynch has not yet responded to a request for comment, but case documents show a judge has approved the settlement agreement. Other stipulations include that Merrill Lynch has the right to recoup any funds that are either left over or left unclaimed by eligible advisors or trainees who do not wish to participate in the settlement agreement.
Credit: Bloomberg
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