Labor & Employment Law

Don't Hedge Your Bets: This Billion Dollar Industry Is Subject to Class Actions

By Mark E. Tabakman, Esq.

Another financial services industry class action.  It seems like there is one every week.  The same themes predominate.  In this latest JP Morgan suit, the hedge fund accountants are claiming they were improperly classified.  They also claimed  they worked 5-6 days per week and worked many hours more than forty.

The fund accountants were responsible for maintaining hedge fund books and records, preparing financial statements, reviewing materials for audits and assembling reports and special projects.  Whether this work is exempt or not is difficult to tell but if the work at issue was highly standardized, routine work, that was performed according to procedures already in place, then the company could face a real problem.  As the salaries of these employees must be at a fairly "high" level, the damages could be quite significant.

This industry is rife for these lawsuits.  Simply because a person works with numbers, or does accounting-type work does not mean that he is exempt from overtime.  Naturally, if the accountants at issue are CPAs and use their CPA training/education in their work, then this case goes nowhere.

But, if they are more junior type accountants or "staff accountants" and do not possess CPA licenses, then watch out. 

Full post as published by Wage & Hour - Development & Highlights on May 09, 2008 (boomark / email).