The suits claimed UBS improperly classified financial advisors and trainees for that position as exempt under federal law from overtime compensation. The settlement also covers state court suits as well.
“UBS settled this case at the national and the state level because it did not believe protracted litigation in multiple courts was in the best interests of employees or clients,” the company said in a statement .
Employees involved in the suit will receive roughly 75% of the settlement through a process to be approved by the court, the bank said. The remaining funds will cover administrative and legal costs.
UBS, based in Zurich, Switzerland, said it had set aside funds to pay most of the settlement in the third quarter of last year.