Citibank Class Action Alleges Wage Theft Through "Time Shaving" and Unpaid Breaks

Case Overview: A class action lawsuit has been filed against Citibank, alleging the bank underpaid employees through time shaving, unpaid breaks, and forcing them to work off the clock.

Who's Impacted: Citibank employees who worked as business bankers, personal bankers, private client relationship managers, operations officers, or in similar roles.

Court: U.S. District Court for the Southern District of New York

Citibank local branch

Bank Employees Claim They Were Forced to Work Off the Clock

Citibank is being accused of underpaying its staff by having them self-report hours scheduled rather than hours worked, making them stay late without overtime, having them work through lunch breaks, and not paying for short rest breaks, a new lawsuit alleges.

The lawsuit, which represents business bankers, personal bankers, private client relationship managers, and operations officers, and other similar employees of Citibank, accuses the banking giant of violating the Fair Labor Standards Act and other state laws and said the arbitration provision provided by the bank fails to make a contract.   

Citibank Accused of 'Time Shaving' and Wage Theft 

Florida resident Roberto De Ioris and Antonio Jefferson from Illinois filed the proposed class action lawsuit claiming that the bank engaged in "time shaving" by requiring employees to self-report their work hours, as well as their meal breaks. 

However, this self-reporting mechanism allowed the bank to manipulate recorded hours, denying employees compensation for actual time worked, the lawsuit alleges. 

De Ioris, who started working at the bank in 2015, claims he was required to arrive at work 15 minutes early and stay up to 75 minutes late each day without being paid for this time. Similarly, Jefferson, who worked in Chicago from 2018 to 2023, was scheduled for 47 hours per week—and regularly worked more—but was only paid for 40, with additional hours being erased through the self-reporting process, the lawsuit alleges.

As well as failing to pay the correct hours, Citibank failed to provide proper wage notice, a legal requirement, the lawsuit alleges.

Lawsuit Claims Citibank Employees Worked Through Breaks Without Pay

De Ioris and Jefferson also allege that Citibank failed to compensate employees for meal breaks, when employees were required to remain on duty performing essential tasks such as approving transactions, managing vaults, and handling customer requests. 

Despite being required to clock out during these periods, employees were not paid for this work, the lawsuit states, and as a result, the employees were routinely underpaid for at least 30 minutes each day.

The pair also allege Citibank didn’t pay them for short breaks, considered compensable work time under federal law. 

Plaintiffs Challenge Citibank's Arbitration Agreement

To resolve issues, Citibank refers employees to an arbitration agreement, the lawsuit states, but De Ioris and Jefferson say the arbitration agreement is one-sided, offering no real benefit to employees and lacking the necessary elements of a binding contract. 

Specifically, the plaintiffs claim that the agreement is unenforceable because it does not provide them with any remedies in the event of a breach by Citibank. The high cost of arbitration, which the employees would be forced to pay and is estimated to be between $6,000 and $11,000, is cited as an additional barrier, effectively preventing employees from pursuing their claims through arbitration.

“Unless both parties to a contract are bound, so that either can sue the other for a breach, neither is bound,” the lawsuit states.

Citibank Joins Growing List Of Companies Facing FLSA Lawsuits

Citibank is far from the only company facing FLSA actions from former employees. Recently, a former Subway employee filed a class action lawsuit against the company, alleging unpaid overtime and minimum wage violations. The worker at a Kendall County Subway location said he worked over 40 hours per week and wasn’t not paid the legally required overtime rate or minimum wage.

Yerba Mate, meanwhile, has been hit with bitter allegations its underpays delivery drivers, doesn’t pay them on time, and doesn’t provide wage statements all required by law, a lawsuit alleges. Additionally, Hollywood giant Paramount Pictures is facing a class action lawsuit filed by film and television crew members alleging a web of labor law violations. The lawsuit accuses Paramount of shortchanging workers in several ways.

In their lawsuit against Citibank, De Ioris and Jefferson want to represent workers from across the country in their claims of violation of the FLSA and state labor laws. They are seeking unpaid wages, including overtime, statutory penalties, liquidated damages, and attorneys’ fees and costs. 

Case Details

  • Lawsuit: De Ioris, et al v. Citibank, N.A.
  • Case Number: 1:24-Cv-06189-Vsb 
  • Court: U.S. District Court for the Southern District of New York 

Plaintiffs' Attorneys

  • C.K. Lee and Anne Seelig (Lee Litigation Group, PLLC)

Have you experienced similar issues with unpaid work hours or breaks at your workplace? Share your thoughts and experiences in the comments below.

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