In the case of Schenning v. Wells Fargo Bank, N.A., a federal collective action claims Wells Fargo misclassified salaried internal fraud investigators as exempt and then failed to pay them overtime.
The lawsuit focuses on a research investigator who earned $82,500 per year and often worked more than 40 hours per week without receiving the required time-and-a-half. He says the bank used the same pay structure for a nationwide group of “Internal Fraud Investigators,” which included Intake, Research, and Field roles.
According to the complaint, management controlled the investigators’ work in detail. They assigned investigations, required strict scripts and checklists, and kept all decision-making at higher levels. Because of this, investigators had little discretion. They often worked 40–50+ hours a week and received only a fixed salary with no overtime pay.
As a result, the lawsuit brings claims under the Fair Labor Standards Act (FLSA), the Maryland Wage and Hour Law (MWHL), and the Maryland Wage Payment and Collection Law (MWPCL). It seeks unpaid overtime, liquidated damages, and certification of a nationwide collective of salaried investigators.
At this stage, the court has stayed (temporarily paused) the case and referred it to arbitration. Proceedings remain paused while the parties take part in that process.
Lessons learned from the case:
- Employers must evaluate the actual duties of salaried employees, not just their titles or contracts, when classifying under FLSA exemptions.
- Misclassification can expose companies to overtime claims, even from higher-paid staff.
- Salaried employees retain the right to challenge unpaid overtime if their job duties do not meet exemption standards.
If you want to know more about salaried employee rights, read our guide on What are my rights as a salaried employee in Maryland?
