Under the Fair Labor Standards Act (“FLSA”), employers are required to pay employees overtime pay for all hours worked over forty per workweek. Bank Secrecy Act – Anti-Money Laundering (“BSA / AML”) employees are typically classified by their employers, banks and other financial institutions, as “exempt” from overtime pay, and paid a salary regardless of the number of hours they work. However, these employees often have been misclassified and could be owed overtime compensation.
Bank Secrecy Act – Anti-Money Laundering Specialists, Investigators, and Officers are responsible for compliance with regulations related to the Currency and Foreign Transactions Reporting Act (“CFTRA”), also known as the Bank Secrecy Act “(BSA”). Specifically, BSA and AML employees monitor transactions for “suspicious activity” related to money laundering attempts, unlawful monetary transactions, and terrorist financing. Often Bank Secrecy Act – Anti-Money Laundering employees are tasked with implementing compliance parameters, and then monitoring activity falling outside the set parameters. BSA and AML employees may create a computerized system that can automatically track such transactions.
However, Investigators, Specialists, and Officers typically do not have authority to “dig” further into the activity beyond what they report. Additionally, these employees often are not performing solely compliance work. Instead, Investigators and Officers often spend much, if not all, of their time performing data entry and clerical tasks.
Banks and other financial institutions require Bank Secrecy Act – Anti-Money Laundering Specialists, Investigators, and Officers Investigators to produce reports of their findings within strict deadlines set by their employers. Often, these assignments cannot be completed within a typical 40-hour workweek, thus requiring employees to work “overtime,” over 40 hours in a work week. However, banks and other financial institutions generally misclassify Bank Secrecy Act – Anti-Money Laundering employees as being exempt from overtime pay.
Certain employees may be exempt from receiving and overtime pay if they meet certain criteria under the Fair Labor Standards Act. Thus, under the FLSA, employees are considered either “exempt” or “non-exempt” from the Act’s overtime pay requirements. The FLSA provides an exemption for employees employed as a bona fide executive, an administrative employee, a professional, and an outside sales employee. Each exemption has specific requirements that an employer must meet to classify an employee as exempt.
Typically, however, Bank Secrecy Act – Anti-Money Laundering employees do not fall within any of these categories required to be exempt from overtime. Therefore, Bank Secrecy Act – Anti-Money Laundering Specialists, Investigators, and Officers may be entitled to unpaid overtime for all hours worked over 40 hours per work week.
Job titles of employees working with the Bank Secrecy Act and Anti-Money Laundering, and other financial institution regulations, that are often misclassified include: officers, investigators, specialists, quality assurance specialists, A&R analysts, data analysts, risk managers, AML compliance analysts, solutions analysts, financial reporting analysts, implementation analysts, and other compliance officers. Even employees classified as independent contractors may be owed overtime. There have been many recent cases regarding the misclassification of employees. Examples include:
If you are a current or former employee for a bank or other financial institution, you may have been misclassified at some point during your employment, and could be entitled to overtime pay. Please give one of the employment attorneys at Fitapelli & Schaffer, LLP a call for a free phone consultation. An experienced attorney will address your concerns and discuss whether you have a wage claim. The phone number is (212) 300-0375, or visit our website for more information at fslawfirm.com.
This web site is designed for general information only. The information presented at this site should not be construed to be formal legal advice nor the formation of a lawyer/client relationship.
Please do not send documents or include any confidential or sensitive information in this form. This form sends information by non-encrypted e-mail which is not secure.
Submitting this form does not create a lawyer/client relationship.
Do you agree with the terms?AGREE DISAGREE