Financial Advisors Class Action Suit Against Waddell & Reed, Inc.
National Class Action Lawsuit Filed
GraceHollis, LLP, The Law Office of Thomas D. Rutledge, and Rudy, Exelrod, Zieff & Lowe, LLP are serving as Plaintiffs' counsel in a federal and state class action lawsuit charging that Waddell & Reed, Inc ("Waddell & Reed") has a common practice of misclassifying its Financial Advisors as independent contractors in violation of federal and state wage and hour laws. The proposed class consists of thousands of current and former Financial Advisors who worked for Waddell & Reed throughout the country. The plaintiffs are Waddell & Reed Financial Advisors who have been uniformly misclassified as independent contractors when, in fact, they are employees. By misclassifying its Financial Advisors as independent contractors, Waddell & Reed has so far evaded federal and state employee protections, including the right to reimbursement for all job-related expenditures.
Current and former Financial Advisors are encouraged to Contact Us to report their work experiences at Waddell & Reed. We will hold your information as confidential to the extent permitted under the law.
On January 3, 2012, the U.S. District Court for the Southern District of California granted Waddell & Reed's Motion for Partial Summary Judgment as to the named Plaintiffs' Fair Labor Standards Act ("FLSA") claims. In essence, Waddell & Reed argued that even if the two named Plaintiffs were employees rather than independent contractors, they fell within the FLSA's so-called "outside sales person" exemption, and therefore cannot seek to recover unpaid minimum and overtime wages. Despite Plaintiffs' best efforts, the Court ultimately agreed with Waddell & Reed. (Click here to read the Court's decision).
We are disappointed with the Court's decision which means Plaintiffs, as it currently stands, cannot recover under the federal FLSA. One possible recourse from the Court's decision with regard to the FLSA claims is to appeal the decision. However, we are currently evaluating this option.
In the meantime, Plaintiffs fully intend to press ahead with their claims brought pursuant to California law on behalf of Financial Advisors who worked for Waddell & Reed in California within the relevant time period, which claims are not affected by the Court's January 3, 2012 decision.
Trademark Notice: "Waddell & Reed, Inc." is a trademark of Waddell & Reed, Inc. Plaintiffs' counsel is in no way affiliated with Waddell & Reed, Inc., and the "Waddell & Reed, Inc." name is used solely for informational purposes.