Merrill Lynch Agrees to $4.9 Million Settlement in Overtime Pay Dispute

Posted on January 8th, 2025 at 2:03 PM
Merrill Lynch Agrees to $4.9 Million Settlement in Overtime Pay Dispute

From the desk of Jim Eccleston at Eccleston Law

Merrill Lynch will pay $4.9 million to resolve a class action lawsuit filed by current and former salaried Financial Solutions Advisors (FSAs) who alleged the firm wrongfully denied them overtime pay. As reported by AdvisorHub, a Florida state judge recently approved the settlement, which will compensate eligible FSAs who worked at the firm over the past three years.

FSAs, who typically include advisor trainees and those working with Merrill Edge’s mass affluent clients, claimed the firm failed to pay them for overtime hours worked beyond their 40-hour workweeks.

The settlement, described in court filings as “a fair, adequate, and reasonable compromise,” allows class members to opt out and pursue individual claims if they choose. Any unclaimed funds will be returned to Merrill, and Grosch’s attorneys are set to receive one-third of the settlement amount as fees.

AdvisorHub reports that while overtime lawsuits are rare among traditional advisors compensated through fees and commissions, they are more common among salaried employees, such as FSAs and client associates. This is not the first such claim Merrill has faced. In 2016, the firm paid $14 million to settle allegations involving 9,500 financial advisor trainees, and in 2019, it paid $550,000 to resolve claims from compliance personnel who worked overtime without pay.

 

Eccleston Law LLC represents investors and financial advisors nationwide in securities, employment, transition, regulatory and disciplinary matters.

Tags: eccleston, eccleston law

Return to Archive

TESTIMONIALS

Previous
Next

You were most helpful with my FINRA deposition. You are a good lawyer and a good person.

Dan B.

LATEST NEWS AND ARTICLES

October 15, 2025
SEC Accuses Florida Insurance Agent of $52 Million Unregistered Securities Scheme

The U.S. Securities and Exchange Commission (SEC) has filed a complaint against Florida insurance agent Charles D. Oliver, alleging he illegally sold about $52 million in unregistered oil and gas securities to roughly 50 retail investors, including retired seniors.

October 14, 2025
Morgan Stanley's Termination of Financial Advisor Highlights Scrutiny Over U-5 Filings

Morgan Stanley recently terminated a 25-year industry veteran in Miami, underscoring the heightened scrutiny surrounding U-5 filings and the challenges that accompany them.

October 13, 2025
Morgan Stanley Cuts Advisor Deferrals in 2026 Compensation Plan, Boosting Advisor Payouts

Morgan Stanley Wealth Management announced a significant change to its 2026 compensation plan, cutting advisor deferral rates by half while keeping total pay and grid structures largely unchanged.