agreed to pay $89 million to settle class-action wage and hour claims filed in several federal courts on behalf of financial advisers and financial adviser trainees.
The company said the settlement resolves claims that UBS incorrectly classified financial advisers and financial adviser 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 advisers and financial adviser trainees.
"The vast majority" of settlement amount was provisioned in third quarter 2005, the firm said, adding that it settled because it "did not believe protracted litigation in multiple courts was in the best interests of employees or clients."
About 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.