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Archived News Release--Caution:
information may be out of date.
For more information call: (202) 693-4650
Minneapolis-based U.S. Bank will pay $3.8 million in back wages to 2,815
employees at its 786 branches in 17 states in an agreement with the U.S.
Department of Labor.
Following a Labor Department investigation at bank branches in four
states, U.S. Bank agreed to conduct a self-audit of all its branches to
determine possible overtime pay due employees classified as personal bankers.
The bank also agreed to reclassify the position of personal banker as nonexempt
from the overtime pay provisions of the Fair Labor Standards Act, which is the
federal minimum wage and overtime pay law. This reclassification is to be
completed by Jan.1, 2000.
Secretary of Labor Alexis M. Herman said U.S. Bank "worked closely with
us to resolve this important issue. The bank acted quickly to revise its
policies and to pay the money due its employees.
"This is a new way of doing business," Secretary Herman said. "By
obtaining this agreement with U.S. Bank to fix the problem corporate-wide, as
opposed to just the few locations where the problem was found, we have
leveraged the resources of the department at the same time that we have
maximized compliance with the law to the benefit of U.S. Bank employees. I
congratulate the company for their cooperation."
The bank's agreement to change its policy means that U.S. Bank personal
bankers will be eligible for overtime pay after 40 hours in a single work week.
The Labor Department investigated branches in Colorado, Idaho, Minnesota and
Washington.
The Wage and Hour Division, U.S. Department of Labor, enforces the Fair
Labor Standards Act, which sets a federal minimum wage of $5.15 for most
workers and generally requires overtime pay for hours worked over 40 in a
workweek. Employers also must keep accurate time and payroll records.
Archived News Release--Caution:
information may be out of date.
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