NEW YORK — KeyBank agreed to pay $3.5 million to settle a Fair Labor Standards Act (FLSA) lawsuit with its client service managers. According to the class action lawsuit, KeyBank intentionally misclassified the client service managers to avoid overtime pay requirements. The lawsuit was filed in New York federal court. However, the class action combines complaints from six additional states including Ohio, Washington, and Maine.
Under the FLSA and the majority of state employment laws, employers are required to pay their employees time and a half for all time worked in a week beyond 40 hours, unless the employee falls within one of a few exempt positions. KeyBank allegedly failed to consider each manager’s duties prior to classifying them all as exempt. Also, the managers claim KeyBank failed to record all of the time they actually worked.
This is not the first overtime violation lawsuit against KeyBank alleging misclassification to avoid paying overtime wages. KeyBank settled a similar lawsuit in 2013 with its relationship managers. Settling an overtime pay violation lawsuit is often quicker and less expensive than taking the case to court for all parties involved.
KeyBank’s client service managers are the primary problem-solvers for client issues. They are supposed to be in charge of training, coaching and scheduling other employees. Client service managers are also expected to maintain compliance standards. However, client service managers are essentially customer service employees with a few additional responsibilities. As customer service employees, they likely do not meet the FLSA requirements to be considered management and exempt from overtime pay.
There are two groups of payments for client service manager class members. The first group is based on the FLSA claim and includes all client service managers nationwide who worked for KeyBank from February 2010 until April 2013. The second group is based on which state the client service manager and some operations supervisors worked. Class members who worked for KeyBank in New York from February 2007 to April 2013 or worked for the company from February 2010 to April 2013 in Colorado, Maine, Washington, Ohio, Oregon, or Indiana are likely entitled to payments in this group. The payments will be based on how long the employee worked for the company during the time in question.
If you or someone you know is a client service manager at KeyBank and you believe is owed unpaid overtime, contact our experienced team of overtime pay lawyers today at (855) 754-2795 to discuss your situation. Or complete the Free Unpaid Overtime Case Review form on the top right of this page. Our top rated legal team will evaluate your case to determine if you should file an individual lawsuit or join a class action. 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. There are strict time limitations for filing so it is important that you call our experienced and expert law firm today!