Banks chartered under the National Bank Act (NBA) don’t have to worry that some of their employment decisions will violate state wrongful-discharge laws. That’s because the NBA says all bank officers serve at the pleasure of a bank board of directors, which can terminate officers as they see fit.
As the following case shows, the definition of “officer” is broad and can include many bank branch managers with titles such as vice president.
Recent case: Eugene Schweikert worked for Bank of America as a financial advisor and held the title of senior vice president. When he received a phone call from someone purporting to be from the FBI inquiring about a customer, Schweikert refused to turn over the requested information. The board then fired him for exercising “poor judgment.”
Schweikert sued, alleging wrongful discharge under North Carolina law.
But the bank prevailed and the lawsuit was dismissed. The court said the NBA provisions overrode state law and clearly included member banks’ rights to fire managers, such as Schweikert, who were designated by the banks’ boards as officers.
Schweikert was a manager with a senior vice president title who had discretion and earned a large salary. He had been hired by the board as an officer and was clearly more than a low-level employee who would be covered by state employment laws. (Schweikert v. Bank of America, No. 06-2137, 4th Cir., 2008)
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/4833/for-some-employees-banking-law-trumps-state-protections "