Class-Action Lawsuit Has the Potential to Cost BOA Hundreds of Millions of Dollars
Thousands of retail-branch and call-center workers employed by Bank of America (BOA) have joined together in an as-yet-uncertified nationwide class action against their employer. The banking giant - the biggest bank in the United States (by value and number of assets) - stands accused of violating myriad state and federal employment laws. BOA representatives vehemently deny the allegations, insisting that the company's policies strictly comply with all applicable employment regulations.
The legal action, filed in Kansas City, Kansas', federal court on June 4, is designed to consolidate and seek class-action status for 12 pending suits. Those suits were filed to recover lost wages and other damages on behalf of workers in California, Florida, Kansas, Texas and Washington.
The Suits Allege That BOA:
- Refused to pay overtime for employees forced to work more than eight hours a day (40 hours in a workweek)
- Did not provide adequate meal or rest breaks
- Required work during legitimate, but unpaid breaks
- Failed to pay out unused vacation time and earned wages in a timely manner to employees who left the company (either voluntarily or involuntarily)
Should the class be certified, plaintiffs' attorneys expect that the suit could grow to include more than 180,000 current and former BOA employees. If the claimants prevail and each employee claims an average of $1,000 to 2,000 in denied wages, the company could suffer roughly $400 million in losses. Furthermore, if BOA's practices are found to have violated existing state or federal employment laws, this case could clear the way for other class actions around the country.
Suit Alleges Nonpayment of Overtime Wages in Violation of Federal Law
Each state has its own statutes governing the treatment of workers at certain types of businesses. Generally a business must be of a certain size and not in one of several exempted industries in order to be governed by state or federal employment laws. BOA is of sufficient size and value to be held to all state and federal labor laws.
Since the illegal acts alleged in these lawsuits happened at BOA branches and call centers across the nation, the federal Fair Labor Standards Act of 1938 (FLSA) applies. It establishes "standards for minimum wages, overtime pay, recordkeeping and child labor" for businesses in both the public and private sectors that "engage in interstate commerce, produce goods for interstate commerce or handle, sell or work on goods or materials that have been moved in or produced for interstate commerce" provided they have an annual volume of business of at least $500,000.
The FLSA is very worker friendly in its approach to the payment of overtime wages. The law states that overtime pay (regular wages plus one-half of the regular wage) is required whenever an employee works more than a standard workweek of 40 hours in any seven-day period. The premium pay requirement generally cannot be waived, even if:
- The company pays a lump sum for overtime work, regardless of whether that lump sum is actually equal to or even greater than that which the employee would have gotten if paid on a per-hour basis
- An employee's base salary is calculated on a workweek that exceeds 40 hours (i.e., even if salary is figured on a 45-hour workweek, the employer is still technically responsible for five hours of overtime pay)
- The worker and employer have a contractual agreement to waive premium pay
- The employer announces that no overtime work is allowed
- Company policy dictates that overtime work will not be paid unless authorized in advance
BOA Accused of Not Allowing Break Periods
In addition to the wage-nonpayment claims for overtime, the now-consolidated lawsuits allege that BOA failed to provide employees with much-needed rest and meal breaks. While federal laws do not specifically require that meal or rest periods be given, it is standard practice for employers to allow employees reasonable breaks during the workday, typically ranging from five to 20 minutes in length.
Most states, however, do require paid rest periods be given to an employee working a full workday (eight hours of consecutive work in a 24-hour period). Time must also be allowed for an employee to eat when he or she is on the job for a full workday. Bona fide "meal periods" when an employee is fully "relived from duty" (i.e., not required to do any of his or her job tasks - answer phones, take messages, man machinery etc.) are not considered hours worked, and they are not paid for under federal or state laws.
Do You Have a Similar Claim?
If you are a current or former BOA employee (or you work for another company that has acted in a similar manner towards its employees) who was denied employment-related benefits like these, you may have a wage-and-hour claim under state and/or federal law. You should consult an experienced class-action attorney in your area to learn more about your rights and responsibilities.
