San Francisco-based First Republic Bank will pay $1,009,644 in overtime back wages to 392 employees in California, Connecticut, Massachusetts, New York and Oregon. A U.S. Department of Labor Wage and Hour Division Investigation revealed the bank incorrectly classified workers as exempt from the Fair Labor Standards Act ().
On that basis, investigators said, the bank wrongly refused to pay overtime to employees who worked more than 40 hours in a week.
The investigation also found that First Republic did not include bonuses as part of employees’ base pay when calculating overtime pay for nonexempt personnel. The bank will have to bring its pay and record-keeping practices into compliance as part of the settlement.
Note: Just because a position requires a college degree or advanced training doesn’t mean it’s a professional position under the FLSA. Although each situation is evaluated on its own merits, someone must generally be able to supervise, hire and fire underlings to be classified as a manager.