Wells Fargo Advisors reaches $4M settlement in wages lawsuit

Wells Fargo Advisors has reached a $4 million deal to settle claims it did not compensate workers for overtime hours.

The settlement, filed Friday in federal court in Missouri, is expected to result in a payment of roughly $2.6 million to those who worked for Wells from April 29, 2010, to the date when the settlement wins court approval.

An estimated 3,400 employees fall into the group eligible for the proposed settlement. Each could be paid $770, on average, before taxes. Exact payment amounts are expected to differ by employee, based on the number of weeks worked, according to court documents.

The settlement comes after Michelle Lindsay, who worked at a Wells branch office in Dallas, filed a federal Fair Labor Standards Act lawsuit in March 2012, seeking class-action approval.

Lindsay alleged that Wells did not pay her for all regular and overtime hours she worked. According to court records, Lindsay claimed Wells "implemented an unwritten policy of only paying its client associates for their scheduled hours."

According to court documents, Wells denies the allegations, saying it followed its written policies that required payment for all hours worked.

Of the $4 million, 33 percent, or $1.3 million, is expected to go to attorneys as fees. Lindsay is expected to receive $10,000 as an incentive for representing class members.