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UBS Statement on Settlement of Wage and Hour Litigation
UBS AG announced today that it has reached agreement in principle to settle class-action wage and hour claims filed in several federal courts on behalf of Financial Advisors and Financial Advisor trainees.
This settlement resolves claims that UBS incorrectly classified Financial Advisors and Financial Advisor trainees as exempt under federal law and the laws of all the states where UBS employs such employees. It also resolves claims that UBS should not have made certain adjustments to the compensation of Financial Advisors and Financial Advisor trainees.
As part of the settlement, the firm has agreed to pay as much as $89 million. The vast majority of this amount was provisioned in third quarter 2005.
UBS settled this case at the national and state level because it did not believe protracted litigation in multiple courts was in the best interests of employees or clients.
Approximately three-quarters of the settlement amount will be available to employees via a claims process that must be approved by the court. Final details of the payment process are still to be determined by the court and will be managed by a third-party administrator. The remaining quarter of the settlement amount will go to administrative and legal costs.
New York, 8 February 2006