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File photo of JPMorgan Chase headquarters. REUTERS Andrew Burton

Judge throws out overtime case by Chase employees

2/22/2013 COMMENTS (0)

By Carlyn Kolker 

NEW YORK, Feb 22 (Reuters) - A federal judge has thrown out a proposed collective action alleging JPMorgan Chase & Co shortchanged branch employees by denying them overtime, dealing a new blow to such employee actions.

In the decision, U.S. District Judge Vincent Briccetti in White Plains, New York, granted JPMorgan's motion to dismiss a lawsuit by Tiffany Ryan, a former assistant branch manager who sued Chase Bank in June 2012.

Ryan, who said she was misclassified as a so-called exempt employee who was not entitled to overtime, sought collective action status for assistant branch managers in purportedly similar positions. "It has been Chase's nationwide policy to deprive its assistant branch managers of earned overtime wages," Ryan wrote in the complaint, which said the bank violated the federal Fair Labor Standards Act.

In dismissing Ryan's lawsuit, Briccetti also granted the bank's motion to compel arbitration, citing a binding agreement in which bank employees agree to resolve employment-related disputes through arbitration rather than litigation. While Ryan's attorneys argued that the agreement was not enforceable because employees' rights to collective actions could not be waived, Briccetti sided with the bank. Citing the 2011 Supreme Court decision AT&T Mobility v. Concepcion and subsequent lower-court rulings that referred to the decision, Briccetti ruled that Ryan must arbitrate her claims as an individual.

"At bottom, the Court finds the class waiver is fair, permits plaintiff to vindicate her statutory rights under the FLSA, does not hinder her ability to recover attorney's fees or costs, and comports with public policy favoring arbitration and honoring private contracts," Briccetti wrote in an 11-page opinion.

Donald Sapir, an attorney representing Ryan, and Thomas Linthorst, an attorney representing the bank, did not return messages seeking comment.

The case is Tiffany Ryan v. JPMorgan Chase & Co., U.S. District Court, Southern District of New York, No. 12-cv-04844.

For Tiffany Ryan: Donald Sapir and Howard Schragin of Sapir & Frumkin and Adam Klein, Molly Brooks and Michael Scimone of Outten & Golden.

For JPMorgan: Thomas Linthorst of Morgan, Lewis & Bockius.

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