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Flagstar Bank Branch Manager Agreements Violated FLSA, Managers Claim

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Case ID: 3896 | Employment | 11/02/2004

A class action has been filed on behalf of all individuals who signed a "My net branch compensation agreement" with Flagstar Bank FSB between October 22, 2002 and the present. The lawsuit contends that although Flagstar treated branch managers as franchise owners required to fund business operations personally, these individuals were in fact employees for purposes of federal labor law and were denied payments to which they were legally entitled.

The plaintiffs claim that they are entitled to minimum wages, overtime payments and a refund of the funds they were improperly required to contribute to the operation of the branches they managed.


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