Settlement could end $20-million overtime class-action suit against firm
Current and former employees at accounting firm KPMG could soon be in for a $10-million windfall.
Following an unpaid overtime class-action lawsuit launched by a former employee against the firm last September, KPMG has decided to compensate employees for unpaid overtime accumulated over the past eight years.
KPMG has developed an "overtime redress plan," to be administered by a third party, to compensate all eligible current and former employees for unpaid overtime earned since Jan. 1, 2000.
"At the time we learned of the allegations in the class action we promised a thorough review of our work practices," said Bill MacKinnon, CEO of KPMG, in a statement. "We estimate the total amount of payout from the plan will be less than $10 million."
In the statement released by the firm, MacKinnon also offered an apology to employees who were not compensated for their overtime. However, the company stated the financial settlement and the apology are not admissions of guilt and the class-action lawsuit is still before the courts.
The lawsuit claims KPMG supervisors regularly required employees to work 90-hour weeks while only billing clients for 60 hours.
The claim stated the pressure "to eat time was pervasive and [employees] that did not 'eat their time' were pushed out by the defendant."
Following an unpaid overtime class-action lawsuit launched by a former employee against the firm last September, KPMG has decided to compensate employees for unpaid overtime accumulated over the past eight years.
KPMG has developed an "overtime redress plan," to be administered by a third party, to compensate all eligible current and former employees for unpaid overtime earned since Jan. 1, 2000.
"At the time we learned of the allegations in the class action we promised a thorough review of our work practices," said Bill MacKinnon, CEO of KPMG, in a statement. "We estimate the total amount of payout from the plan will be less than $10 million."
In the statement released by the firm, MacKinnon also offered an apology to employees who were not compensated for their overtime. However, the company stated the financial settlement and the apology are not admissions of guilt and the class-action lawsuit is still before the courts.
The lawsuit claims KPMG supervisors regularly required employees to work 90-hour weeks while only billing clients for 60 hours.
The claim stated the pressure "to eat time was pervasive and [employees] that did not 'eat their time' were pushed out by the defendant."
