NEW YORK — Auditors with Deloitte & Touche LLP are currently in settlement negotiations with the company in their consolidated class action overtime pay lawsuit. An attorney for Deloitte recently commented that the company is considering a settlement, but is not optimistic that one will be reached. The reason behind the uncertainty is the recent federal court decision which ended the class action overtime lawsuit between KPMG and its auditors. The dismissal of the KPMG class action indicates that the courts are likely to rule against the auditors. However, nothing is certain, and Deloitte is continuing with the settlement negotiation with the court’s encouragement. The court gave both parties until September 26 to submit the details and status of the settlement negotiations.
The Auditor Claims
Deloitte is one of the “Big Four” firms along with KPMG. In the KPMG decision, the court found that KPMG’s entry-level auditors were given a professional level of discretion, and held a level of specialized knowledge that met FLSA overtime exemption requirements. The Deloitte auditors have a similar, but not identical, claim against their employer. The current Deloitte case is a combination of lawsuits filed against the company in California and New York federal courts in April 2011. In December 2011, the court consolidated the New York lawsuit with the California case, which was similar, and granted conditional class certification. The consolidated lawsuit claims Deloitte misclassified its auditors as exempt and not entitled to overtime, despite the fact the auditors were low-level employees, in violation of the Fair Labor Standards Act (FLSA).
Auditor Duties
The class action potentially represents nearly 10,000 current and former audit assistants, audit-in-charge, audit senior, and audit senior assistants nationwide who were denied compensation for their overtime work. The auditors claim the company classified the audit assistants and audit seniors as exempt under the “administrative” or “professional” exemptions. Yet their primary duties are allegedly low-level audit tasks, such as reviewing client documents, updating records, and filling out form letters. Additionally, in support of the auditor’s claim, and potentially a major differentiator from the KPMG lawsuit, the lawsuit notes that the entry-level auditors are not required to hold a certified public accountants (CPA) license for the position, and their decisions require approval from more senior employees. The lack of a CPA license could indicate to the court the auditors do not meet the “professional” exemption requirements, and the hierarchy approval system likely indicates the auditors lack the independence required for the “administrative” exemption.
Determining if your employment position is exempt or nonexempt may not be easy or straightforward. If you believe you have been misclassified as exempt, contact our experienced team of overtime pay lawyers today. You may complete our Free Unpaid Overtime Case Review form or call our knowledgeable team at (855) 754-2795 for a free evaluation of your situation. Under our No Fee Promise, if we accept your case, you will pay no legal fees or costs unless you receive a settlement.