In June 2011, Merrill Lynch employee Nancy Martignago filed a lawsuit against her employer, alleging she and others in similar positions were regularly denied overtime pay for their extra time and attendance, as reported by Reuters. Martignago, a broker assistant, was expected to aid financial advisors. In most cases, this required Martignago and other brokers assistants to work long hours that exceeded the standard 40-hour workweek.

Because these workers were paid on a salary basis and considered non-exempt by the financial institution, they were not issued premium pay for their extra time on the clock, the source adds. And in some cases, Martignago claims the employer altered timesheets to reflect lower overtime totals.

In response to these claims, Merrill Lynch has announced it will create a $12 million fund to cover lost wages, court costs and liquidated damages associated with the employee attendance violations. This decision could potentially impact 5,000 workers in these roles.

Although it may seem more cost-effective to pay employees less in the first place, it can actually cost businesses more in the long term when compiled with additional penalties tacked on by the Department of Labor.

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