PNC Bank settles MLO class action for $11.85 million (CA)

If you were employed by PNC Bank, N.A. in California as a mortgage loan officer between June 28, 2014, and June 30, 2019, you may be eligible to claim a portion of an $11,850,000 class action settlement.

PNC Bank, N.A. has agreed to pay $11,850,000 to settle a class action lawsuit for alleged violations of California labor laws, including failure to provide paid rest periods and accurate wage statements.

Who are the class members?

Class members are those who worked as Mortgage Loan Officers for PNC Bank in California during the class period from June 28, 2014, to June 30, 2019. To qualify as a class member, you must:

• Have been employed by PNC Bank as an MLO in California during the specified period.
• Not have opted out of the class settlement.

The settlement also covers claims during the settlement period from June 28, 2014, through June 1, 2023.

How much can class members get?

The settlement provides a gross settlement fund of $11,850,000, which will be distributed among class members based on their compensation earned during the class period. Class members will receive payments calculated using a point system that considers the length of employment and compensation earned.

• Base Payment: Class members employed from January 4, 2017, to June 1, 2023, will receive a base payment calculated by multiplying their working percentage by $4,000.
• Allocation Points: Additional payments will be based on allocation points, with different values assigned for compensation earned during various periods. For example, from June 28, 2014, to January 4, 2017, each dollar of compensation earns 0.15 points. The total net settlement fund, after deductions, will be divided by the total allocation points to determine the dollar value of each point.

Example Calculation

Let's assume a class member worked for PNC Bank from January 2015 to June 2019 and earned $50,000 in compensation during this period. Here’s how the calculation would work:

1. Base Payment: If they worked from January 4, 2017, to June 1, 2023, their working percentage would be calculated based on the months worked during this period. Suppose they worked 24 months out of the 77 months, their working percentage would be 24/77. Therefore, their base payment would be (24/77) \* $4,000 = $1,246.75.
2. Allocation Points:
1. For the period from June 28, 2014, to January 4, 2017, they would earn 0.15 points per dollar of compensation. If they earned $30,000 during this period, they would get 30,000 \* 0.15 = 4,500 points.
2. For the period from January 5, 2017, to June 30, 2019, they would earn 1.0 points per dollar of compensation. If they earned $20,000 during this period, they would get 20,000 \* 1.0 = 20,000 points.

1. Total Points: The total points would be 4,500 + 20,000 = 24,500 points.
2. Point Value: If the adjusted net settlement fund is $7,296,071.38 and the total points for all class members is 60,000,000, the point value would be $7,296,071.38 / 60,000,000 = $0.12 per point.
3. Total Payment: The total payment would be the base payment plus the allocation points value, which is $1,246.75 + (24,500 \* $0.12) = $1,246.75 + $2,940 = $4,186.75.

How to claim compensation

Class members do not need to take any action to receive their settlement payment. The Settlement Administrator will automatically distribute payments to eligible class members.

How is the $11,850,000 Settlement fund distributed?

• $30,000 for the Settlement Administrator's fees and expenses.
• $100,000 for PAGA settlement, with $75,000 to the California Labor and Workforce Development Agency and $25,000 to class members.
• $10,000 service payment to the Named Plaintiff.
• Up to $3,950,000 in attorneys' fees and $150,000 in costs.
• The remaining amount will be distributed to class members.

Important dates

• Final Approval Hearing: October 16, 2024

When is the PNC Bank MLO Settlement payout date?

Payments will be issued approximately three months after the final approval hearing, assuming no appeals delay the process.