News Flash: Employer To Pay Almost $4 Million For Misclassifying Workers As Exempt

U.S. Bank has agreed to pay $3.8 million to “personalbankers” in several states, including California, who were improperly classified asexempt from the overtime laws. The personal bankers’ job duties included creating newbanking relationships, opening accounts and selling banking services. U.S. Bank contendedthat the workers qualified for the administrative exemption to the overtime laws becausethey were highly professional, exercised independent judgment and worked independently.But following an investigation of the bank’s branches in four states, the Departmentof Labor said the personal bankers were actually selling U.S. Bank products anddidn’t fall within the exemption. U.S. Bank then agreed to reclassify the workers andconducted a self-audit of its branches in 13 other states, which resulted in the $3.8million pay-out.