Wells Fargo Unpaid Overtime Class Action Settlement Affirmed

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A class action settlement reached by Wells Fargo & Co. with nearly 4,500 home mortgage consultants will withstand a bid to reconsider its approval, according to a Texas federal judge who denied a request to overturn approval of a $15 million wage and hour settlement. He said that the class of mortgage consultants — one of five in the multidistrict litigation — could not speak for the others, since the named plaintiffs had not opted in.

Judge Gray H. Miller said the class of plaintiffs known as the “Chan plaintiffs” lacked the standing to oppose the settlement of the unpaid overtime lawsuit in the multidistrict litigation. The wage and hour class action lawsuits represented involve five lawsuits in which the plaintiffs claim Wells Fargo did not pay overtime compensation to those who worked for the banking giant as mortgage consultants, loan originators, loan consultants, or other similar positions, in violation of the Fair Labor Standards Act (FLSA).

Only three of the five cases pertained to this action: Richardson, et al. v. Wells Fargo Bank, N.A.; Chaplin, et al. v. Wachovia Mortgage Corp., et al.; and Chan v. Wells Fargo Home Mortgage, Inc. The Chan case is a class action lawsuit over unpaid overtime wages and minimum wage, as well as for failure to allow employee meal and break periods as Washington state law designates.

The sticking point for the Chan plaintiffs was the Washington law. The Richardson and Chaplin class action lawsuits ended in mediation with Wells Fargo, and in March they reached a settlement agreement in which “each settling plaintiff will receive a proportionate share of the settlement fund according to a formula that takes into account the person’s tenure and compensation,” the order states. The average recovery for each settling plaintiff is $3,343.

The settling plaintiffs are represented by Paul Yetter and Reagan Simpson of Yetter Coleman LLP, Rhonda Wills of the Wills Law Firm PLLC, Diana Marshall of Marshall & Lewis LLP and John Padilla of Padilla Rodriguez & de la Garza LLP.

The Wells Fargo Unpaid Overtime Class Action Lawsuit is In re: Wells Fargo Wage and Hour Employment Practices Litigation (No. III), Case No. 4:11-md-02266, in the U.S. District Court for the Southern District of Texas.

Join a Free Unpaid Overtime Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay in California within the past 2 to 3 years, you have rights – and you don’t have to take on the company alone. Learn more and obtain a free evaluation of your case to see if you’re eligible for back pay and other compensation at the Unpaid Overtime Lawsuit: Wage & Hour, Overtime Pay Class Action Lawsuit Investigation.