On March 28, 2011, Judge Barbara S. Jones, a Federal judge of the U.S. District Court for the Southern District of New York, preliminarily approved a $2 million class and collective action settlement for Creighton v. Oppenheimer & Co. Inc. et al. A hearing is scheduled for September 7, 2011 to determine fairness and good faith of the settlement based on class and collective action procedures and requirements and to enter judgment.
The class action lawsuit was filed in May of 2006 by Leon Greenberg along with Mark Thierman, Blumenthal & Markham and United Employees Law Group. The suit alleges that the Oppenheimer brokerage firm violated the Fair Labor Standards ACT (FLSA) by misclassifying stock brokers as exempt from overtime pay.
Brokers allege that their pay is based on sales commissions and that they are not paid a guaranteed salary. Oftentimes they work greater than 40 hours per week, for which they should be paid overtime.
Sources:
Oppenheimer To Settle Stockbrokers' OT Suit For $2M, Law360, March 29, 2011
Lawsuit against Oppenheimer alleges Stock Brokers may be entitled to Overtime Pay, LawyersandSettlements.com, May 29, 2006
