PNC has agreed to pay $16 million to settle a federal overtime lawsuit filed by current and former mortgage loan officers, according to court documents.
U.S. District Judge Arthur Schwab approved the class-action settlement Tuesday.
The settlement covers 3,431 people who worked for the bank nationwide since Aug. 7, 2012. It also covers mortgage loan officers who worked for PNC in California since Aug. 7, 2011, and in New York since April 4, 2011, according to court documents.
Attorneys for the plaintiffs couldn't be reached for comment. PNC declined to comment.
The plaintiffs claimed the company discouraged them from reporting overtime and improperly calculated their pay when they turned in overtime. PNC denies liability in the settlement but agreed to issue a new overtime policy for mortgage loan officers, according to court documents.
The attorneys will collect about $5.5 million in fees and legal costs from the $16 million, according to the settlement agreement. The 21 people who actively pursued the case and a companion lawsuit as named plaintiffs will receive $10,000 each.
The rest of the money, minus administrator fees, will be divided among the mortgage loan officers based primarily on the number of weeks they worked for the bank, according to court documents.
