Wells Fargo Reaches $12.8 Million Settlement with Current and Former Employees

By Nathan Abbott

Published on October 09, 2006

In response to a suit on behalf of approximately 4,500 current and former employees, Wells Fargo & Co. has agreed to pay $12.8 million to resolve the complaints. The suit, Gerlach v. Wells Fargo & Co., alleged violations of the Fair Labor Standards Act, the Employee Retirement Income Security Act, California’s Unfair Competition Law, and wage and hour laws. In reaching the settlement, which resolves all plaintiffs' and class members' claims, Wells Fargo denied any wrongdoing.

The San Francisco banking giant will put the $12.8 million into a fund to be distributed among the employees, who all worked for the bank as business systems analysts or e-business systems consultants during a period between August 2001 and September 2006. Each class member is entitled to a monetary payment from the fund, with the amount distributed to be based upon the length of employment, the specific position held, salary, and whether or not the employee worked in California.

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