Thousands of stock brokers, brokers assistants, and financial advisors that worked at AG Edwards, Edward Jones, and Merrill Lynch in Illinois, Missouri, and New Jersey may have been cheated out of their duly earned overtime pay by unscrupulous and dishonest brokerage firms. Federal and state laws cover a number of specific situations where certain employees can be denied overtime. Under the Fair Standards Labor Act, a worker is entitled to overtime pay if they do not fall into the "administrative, professional, or executive" categories, and are compensated at least $455 a week This amount, called the salary test, must not vary depending on quality or quantity of work. To determine occupational category, employers use the duties test. The federal duties test stipulates that an employee must perform non-manual or office work in a managerial or general business capacity and must also exercise "discretion and independent judgment" in regards to "matters of significance." If an employee does not meet these tests, they qualify for overtime. Most stockbrokers and financial advisors work on a commission basis, and therefore do not receive the base $455 weekly pay mandated by the federal government. Furthermore, even though most brokers work exceedingly long and stressful hours, they may not make enough commission to take home the base $455, and thus their hours are wasted. If employers elect to classify these hard workers into exempt classes contrary to their clear definitions under the law, they can be held financially and legally responsible. Thousands of brokers in California have successfully forced Merrill Lynch to pay millions of dollars in unpaid overtime. You may be entitled to similar compensation. |
