Compliance » Regulations Keep Wells Fargo From Paying Laid-Off Workers

Regulations Keep Wells Fargo From Paying Laid-Off Workers

February 3, 2017

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Regulations meant to prevent “golden parachute” packages are preventing Wells Fargo from giving severance pay to about 400 laid off employees. The payments add up to several million dollars. Though routine severance pay is sometimes exempted, Wells Fargo’s is not, according to the bank. The laid-off workers are not accused of wrongdoing associated with last year’s scandal, in which employees were found to be creating accounts under customer’s names without their knowledge or permission. Wells Fargo froze all layoffs from taking effect as of Nov. 21, three days after the Office of the Comptroller of the Currency, a federal regulator, informed them of additional restrictions related to the phony accounts scam.

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