KCR
investigating Big 4 Accounting Firms for misclassification
of associates and failure to pay overtime and
provide mandated benefits
Are you an unlicensed accounting associate at
one of the Big 4 Accounting firms? Are you classified as an exempt
employee? You may be entitled to overtime and other mandated
benefits under federal and state laws.
The law firm of Kershaw, Cutter & Ratinoff
(“KCR”)
is currently investigating potential class action lawsuits on
behalf of associates at Big 4 Accounting Firms who have not yet
obtained their CPA license. KCR believes that these unlicensed
associates have been improperly denied overtime and other benefits
under the federal Fair Labor and Standards Act (FLSA), and state
laws, including the California Division of Labor Standards Enforcement.
The Big 4 Accounting Firms at issue are:
- PriceWaterhouseCoopers
- KPMG
- Ernst & Young
- Deloite & Touche
Under federal and many state
laws, only “exempt” employees
can be denied overtime pay and mandated meal and rest periods. With
respect to accountants, these laws provide that only those who
have first obtained a CPA license can properly be classified
as “exempt” employees. This is true even if
the accounting firm pays its associates a salary and does not
require associates to keep track of the hours they work.
For
years, the Big 4 Accounting Firms have ignored these statutes
and have improperly treated all of their unlicensed associates
as exempt employees. Given the long hours that young associates
typically work, this has likely resulted in thousands of dollars
in potential damages to affected workers.
In fact, an associate
who earned $42,000 a year and worked approximately 250 hours
of overtime per year may be entitled to approximately $40,000
in overtime pay over a 5-year period. This amount does
not even include the substantial penalties and interest that
would be imposed for the willful failure to pay overtime.
The
actions of the Big 4 Accounting Firms are in stark contrast to
many smaller accounting firms who have always treated their unlicensed
associates as non-exempt employees.
Overtime class action lawsuit filed against
PriceWaterhouse Coopers
KCR has already filed
a class action suit against the largest Big 4 Accounting Firm,
PriceWaterhouse Coopers (“PwC”)
to recover overtime for its unlicensed associates. The
case has been pending for more than a year, and the issue of
whether the case will be approved as a class action should be
decided shortly.
If the Court agrees to certify the class,
this will be the first time that a Big 4 Accounting Firm will
face the threat of actually having to comply with laws mandating
the payment of overtime on a company-wide basis. A successful
verdict in this case could potentially change the way all Big
4 Accounting Firms do business nationwide.
Contact Kershaw, Cutter & Ratinoff
If you worked for any of the Big 4 Accounting
Firms as an unlicensed associate within the last four years,
we would like to hear from you. Please contact us one of
the following ways:
Complete our online form
Or call Attorney Stuart Talley
at:
1-800-979-5279
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