Morgan Stanley to pay $4.2M to settle overtime pay case

Morgan Stanley and sales assistants in its wealth management branch system who claimed they were owed overtime pay agreed to a $4.2 million settlement.

The lawsuit was filed in June 2011 by three client service associates, who alleged violations of the federal Fair Labor Standards Act and New York state labor laws, according to Reuters.

Client services associates are classified by Morgan Stanley as non-exempt employees, entitling them to overtime pay if they work more than 40 hours a week.

“Morgan Stanley maintains robust policies to ensure that non-exempt employees are paid for all time worked," a spokeswoman for the firm wrote in an email. "However, with this settlement we will put an end to protracted and expensive litigation that is a distraction from our business.”

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