NEW YORK — Capital One received preliminary court approval recently for its $3 million settlement offer in a putative class action overtime pay lawsuit. The settlement offer came just months after assistant branch managers in New York, New Jersey, and Maryland filed their class action lawsuit in federal court. The assistant branch managers, who filed their claim in March, allege they were wrongfully misclassified under the labor laws in each state and under the Fair Standards Labor Act (FLSA). They claim they are nonexempt employees and, therefore, entitled to overtime pay. While there are any number of reasons for reaching a settlement so quickly, the parties must still wait until a settlement hearing in November, when the court determines the fairness of the settlement, before the offer is finalized.
The Settlement
The settlement will address the claims of current and former assistant branch managers at Capital One locations in New York, New Jersey, and Maryland. Each state has its own subclass within the class action. Each subclass has a different time frame for its potential class members. Assistant branch managers working in New York from March 2008, New Jersey from March 2011, or Maryland from March 2012 through July of this year, may be entitled to join the state claims. The FLSA claim is open to assistant branch managers working for Capital One from March 2011 to July 2014. The settlement is believed to cover about 27 percent of the class members’ lost wages with an average payment of around $1,300. Even though this may seem like a small percentage of the damage from unpaid wages over the course of many years, the settlement guarantees the class members will receive some compensation.
Trials and Settlements
Settlement offers are often less than what could potentially be won at trial, but in exchange settlements are usually quicker and less costly. Going to trial, on the other hand, could potentially result in significantly higher payouts and greater recovery, but it could also take years and have greater costs. And there are no guarantees of any recovery at trial. Employees, employers and their respective councils must weigh the costs and benefits associated with settlements and trials against the available evidence and the history of similar cases.
If you are or were an assistant branch manager for Capital One and you have questions about the settlement offer or believe you may have a claim of your own, contact our top-rated team of overtime pay lawyers today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form and our experienced legal team will evaluate your case. If we accept your case, we will represent you under our No Fee Promise. This means there are no legal fees or costs unless you receive a settlement. However, there are strict time deadlines for joining or filing a lawsuit so it is important to contact an attorney immediately.