San Francisco, CA: A preliminary $950,000 settlement has been reached in a California labor law class action lawsuit pending against JP Morgan Chase Bank NA. The lawsuit was filed by the company' California underwriters who alleged the bank failed to pay overtime overtime and provide proper breaks.
The proposed agreement potentially ends the three-year-old lawsuit, which was filed by two loan modification underwriters who worked at a Chase location north of San Diego. They alleged the bank was in violation of federal and state labor laws and that they suffered from overwhelming workload requirements. Filed in 2012, by plaintiffs Mary Loeza and Angie Reveles, the suit claims that Chase saddled its underwriters with unrealistic quotas for processing mortgage loan modification applications that they could not achieve without working overtime.
The plaintiffs further claimed that Chase had a strict policy on approval of overtime and would punish employees who worked it without authorization, leaving employees to work off-the-clock and through meal breaks and rest periods to meet the elevated quota, according to the settlement agreement.
"Based on their knowledge of this action, plaintiffs determined that the settlement would constitute the best outcome for class members,"court documents state. "Likewise, Chase concluded that this action should be settled in order to avoid the expense, inconvenience and burden of further legal proceedings, and the uncertainties of trial and appeal."
The proposed class consists of approximately 838 current and former Chase employees who worked at the bank between December 11, 2008, and the date the judge preliminarily approves the agreement. If certified, the settlement will see each class member receive a share of the settlement funds, fees and expenses are paid.
The case is Loeza et al v. JP Morgan Chase Bank NA et al, case number 3:13-cv-00095, in the U.S. District Court for the Southern District of California.
