Merrill Lynch Agrees to $4.9 Million Settlement in Overtime Pay Dispute

Posted on January 8th, 2025 at 2:03 PM
Merrill Lynch Agrees to $4.9 Million Settlement in Overtime Pay Dispute

From the desk of Jim Eccleston at Eccleston Law

Merrill Lynch will pay $4.9 million to resolve a class action lawsuit filed by current and former salaried Financial Solutions Advisors (FSAs) who alleged the firm wrongfully denied them overtime pay. As reported by AdvisorHub, a Florida state judge recently approved the settlement, which will compensate eligible FSAs who worked at the firm over the past three years.

FSAs, who typically include advisor trainees and those working with Merrill Edge’s mass affluent clients, claimed the firm failed to pay them for overtime hours worked beyond their 40-hour workweeks.

The settlement, described in court filings as “a fair, adequate, and reasonable compromise,” allows class members to opt out and pursue individual claims if they choose. Any unclaimed funds will be returned to Merrill, and Grosch’s attorneys are set to receive one-third of the settlement amount as fees.

AdvisorHub reports that while overtime lawsuits are rare among traditional advisors compensated through fees and commissions, they are more common among salaried employees, such as FSAs and client associates. This is not the first such claim Merrill has faced. In 2016, the firm paid $14 million to settle allegations involving 9,500 financial advisor trainees, and in 2019, it paid $550,000 to resolve claims from compliance personnel who worked overtime without pay.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

The work that you and your team have performed on my behalf is exemplary.

JT

LATEST NEWS AND ARTICLES

April 2, 2025
Bybit Suffers Massive $1.5 Billion Crypto Hack Amid Security Concerns

Bybit, a major cryptocurrency exchange, has fallen victim to a devastating security breach, resulting in the theft of approximately $1.5 billion in Ethereum.

April 2, 2025
A Look at Broker William Keen Butcher’s BrokerCheck

According to BrokerCheck, Broker William Keen Butcher (CRD# 2098675) is currently registered at Independent Financial Group, LLC in Kemah, Texas and was previously registered at International Asset Investment Management, LLC and International Investment Advisory, LLC in Orlando, Florida. Butcher has or has had three customer disputes on his BrokerCheck.

April 2, 2025
A Look At Regulatory Disclosures And Customer Complaints Against Buckman Advisory Group, LLC And Broker Harry J. Buckman

According to BrokerCheck, broker Harry John Buckman (CRD #2202467), currently registered with Buckman Advisory Group, LLC, Mayhill Agency, LLC, and Buckman, Buckman, and Reid, Inc. in Little Silver, New Jersey, has or has had two regulatory events and two customer disputes.