Morgan Stanley reaches $4.2m overtime settlement

Morgan Stanley and sales assistants in its wealth management branch system who claimed they were owed overtime pay have agreed to a $4.2 million settlement.

FOX Business reports three client service associates began their federal class action lawsuit in June 2011 on behalf of current and former Morgan Stanley client service associates, alleging violations of the federal Fair Labor Standards Act and New York state labor laws.

Client service associates, who are often compensated by both Morgan Stanley and brokers on teams where they work, are classified as non-exempt employees, entitling them to overtime pay if they work more than 40 hours a week. The lawsuit was brought against Morgan Stanley & Co and its brokerage subsidiaries, Morgan Stanley Smith Barney LLC and Morgan Stanley.

'Morgan Stanley maintains robust policies to ensure that non-exempt employees are paid for all time worked,' a spokeswoman for the firm wrote in an e-mail. 'However, with this settlement we will put an end to protracted and expensive litigation that is a distraction from our business.'

Hit the link below to access the complete FOX Business article:

Morgan Stanley to pay $4.2 million to settle overtime pay case

Hong Kong Stocks Rebound, With China Mobile Rising

JefferiesAnd the Best Place to Work in the global financial markets 2018 is...

Register for HITC Business News