Bank of America Merrill Lynch has agreed to pay $2.8 million to settle a class action that claimed the firm took too long to pay wages to departing brokers.
The case involves almost 300 brokers in California who resigned in the years following Merrill Lynchs purchase by Bank of America in 2008. A former Merrill Lynch broker who left in 2010 initiated the class action to seek penalties for late payments. The claim, which was filed in the U.S. District Court for the Northern District of California, asserted that Merrill Lynchs practice of disbursing payment commission wages at the next pay cycle violated California labor laws, which require payment within 72 hours of the employees last day.
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