Bank of America Corp. will pay $11 million to end a lawsuit claiming it failed to reimburse hundreds
of mortgage loan officers for work-related travel expenses.
The deal, which received preliminary court approval Nov. 14, will affect about 1,900 loan officers
who said the bank violated California law by failing to reimburse them for using their personal
vehicles for outside sales work.
Class members who don’t opt out will see about $7.6 million from the settlement. The rest will go
toward attorneys’ fees, administrative fees, service awards, and a $37,500 penalty to the
California Labor Workforces Development Agency.
Bank of America also agreed to modify its practices with respect to travel reimbursements. The
bank pledged to send monthly emails reminding loan officers that work travel expenses are
reimbursable and to increase employee training surrounding the reimbursement process. The settlement comes almost a year after Judge Edward M. Chen of the U.S. District Court for the
Northern District of California certified the case as a class action.
Leonard Carder LLP and Wynne Law Firm represent the loan officers. O’Melveny & Myers LLP
represents the bank.
The case is McLeod v. Bank of Am., N.A. , 2018 BL 423201, N.D. Cal., No. 3:16-cv-03294-EMC,
11/14/18 .
