Wage Class Action: Prudential Settles for $12.5 Million

by Norman B. Blumenthal on August 9, 2017

blumenthal nordrehaug & bhowmik, southern california employment law, southern california employment law attorneys, wage class action, prudential wage class action, wage class action settlement, california wage class actionIn regards to the class action claiming that Prudential Financial Inc.’s financial representatives were inappropriately docked pay for work expenses as well as going unpaid for overtime hours worked, the company requested that the federal court approve a $12.5 million settlement. In court documentation both parties stated that the settlement resulted after almost a year of negotiations in addition to a pair of mediation sessions (May 2016 and September 2016). Both parties agreed to settle the claims of Prudential employees throughout the listed 12 states.

The matter is being resolved after close to a decade of back and forth negotiations. Parties involved feel that the settlement is in the best interest of all those involved. The company, Prudential, stated that they value their workforce and their partners and look forward to putting the entire matter behind them.

Financial representatives of Prudential filed a complaint in September of 2016. They accused Prudential of misclassifying them as independent contractors as well as taking improper deductions from workers’ pay due to office use, payment for assistants on the job, office supplies used, insurance costs, etc. Plaintiffs also alleged that the company failed to pay overtime pay due to representatives. Employees of the company also claimed that the deductions didn’t change their taxable earnings total or their pension benefits. They also claim that Prudential violated employee contracts. Plaintiffs claim that the company was in violation of both the federal Fair Labor Standards Act and state law.

In 2013, the plaintiffs’ initial motion for class certification was rejected. In February 2015, U.S. District Judge Claire C. Cecchi found that original problems resulting in the class certification rejection had been addressed, but still agreed with Prudential that individual issues on top of an expert’s flawed report included in the court documentation prevented certification for the reps’ overtime subclasses.

If you have questions or concerns regarding your overtime pay or if you have been misclassified on the job, please get in touch with one of the experienced California employment law attorneys at Blumenthal, Nordrehaug & Bhowmik.

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