EDJ Overtime Settlement

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Jones99's picture
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I just received a "Consent-to-Join" Form for the class action minimum wage, overtime, etc. settlement.  I am not in PA, CA, OH, or NY; therefore it says that I am eligible to collect compensation for the time worked for EDJ between 8/16/03 and 5/14/08.  I started as a "new-new" with Jones in '99, and I am currently employed with them.
Just wondering if the Vets like Spiff, et al, received the same notice, and your opinions/actions on this topic.
Part of me wants to file for whatever my share is; I only wish that doing so would lessen the attorneys take on this deal (no chance, they get 4.75 mill).
Under II CLASS COUNSEL RECOMMENDS THE SETTLEMENT it states:  "The law firms that represent the class recommend that you participate in the Settlement.  In part, that is because the claims alleged in the Collective Action are novel and highly technical.  For instance, there is no reported court decision that holds that stockbrokers are entitled to overtime pay.  To the contrary, at least one US District Court and the US Dept of Labor have concluded that, in some cases, stockbrokers are NOT entitled to overtime pay under federal law.  In other words, the claims alleged in the Collective Action are highly uncertain.  Furthermore, even if the class obtained a favorable judgment in the US District Court for the Northern District of Ohio, that judgment would likely be tied up for several years on appeal.  In light of the substantial risk that the class might not receive anything at all if the Collective Action proceeded to trial, Class Counsel believes that the Settlement is in the best interests of the Collective Action Class."
Sounds like a plea to help THE ATTORNEYS to extort EDJ...
Jones99

B24's picture
B24
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I got it also. I am ignoring it. I don't have time to worry about that kind of stuff.

Soothsayer's picture
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After the $4.75 million to attorneys, $120,000 to the "head of the class", $250,000 to administrators, etc., etc., there is about $13.8 million (give or take) to be shared by the class.  If you choose to forego your share, that's fine--more for me.  To build on Babbling Looney's analogy, if you divorced your now ex-wife, and then a court found that she owed you $5,000, would you take it?  Of course you would!  I can't wait for the day to cash that check.  I figure my share to be in excess of $2000.  Hey, Eddie.  Don't be funny--just give me my money!  BTW, Edward Jones sucks really, really hard.  They're about to swalllow, too. 

Effay's picture
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I am with EJ in CA., and the consultant firm emailed me today that checks would be in the mail mid August.
Yeah baby! Consider it pay for all those hours volunteering.
Yet thats why they cut our payout in Ca. - its just tougher to do biz in this state.
See me grin on the way to the bank.

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gvf
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Glad to hear EDJ has to pay up as well.  AIG Retirement/Valic just had a similar case settle about 2 months ago in California.  I am not a lawyer, but I was advised to take the check.  If you still have "issues" with with EDJ about overtime, salary, commissions, unfair employee practices, etc., usually these types of settlements will not ruin any future case you have against them. 

Gone Indy's picture
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I left Jones a few years ago so I certainly will take the check.  If I were still there I would think long and hard about joining the suit.  Don't think for a second that The GPs won't have a list of current FAs that joined the suit when it comes time for the next LP offering!

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iceco1d wrote:WTF is all of this overtime b.s. about?  I agree with Soothsayer's comparison; if it's right there in front of your face, you might as well take it...but seriously?  What crybaby a-hole started that mess? 
 
In other news - B24, WHAT THE F&CK IS WITH YOUR NAME?  I swear to god.  Leave.  Enough with the Broker# names, and then to thief an existing short-hand version?  My god. 
 
I guess my tagline didn't clarify it.  I AM Broker24.  My profile got all messed up, so instead of trying to fix it, I just set up a new one. Soooooo, B24=Broker24.  I can't imagine I would be popular enough on a Broker website for someone to hijack my name....

Spaceman Spiff's picture
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I'm still trying to figure out what to do on the issue.  I haven't taken the time to read the thing completely.  Typically I ignore things like that.  I feel a bit guilty taking the money from my own company.  But, on the other hand, any dollar a current Jones FA takes is one more dollar that doesn't go to all of you traitors, turncoats, and dissidents who left EDJ for Indyworld!

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Effay wrote:I am with EJ in CA., and the consultant firm emailed me today that checks would be in the mail mid August.
Yeah baby! Consider it pay for all those hours volunteering.
Yet thats why they cut our payout in Ca. - its just tougher to do biz in this state.
See me grin on the way to the bank.I'm in CA too, but I haven't heard anything from the consulting firm.   That would be great news!!I personally thought the overtime law suit was dumb because we all knew when we got into this buisness that we were not paid hourly on a 9-5 job.  However, I'm not about to turn down some extra money

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iceco1d wrote:
Hey now, that tagline wasn't there when I posted that!
 
No worries.

jonesin's picture
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I've only been with Jones for a few years and I've concluded that in order to get ahead you need to look good to the man all of the time. At our regional, I had a conversation with my RL (also a GP) who told me that Jones saw this thing comming a few years ago, but waited for someone to force the issue because money was tight during the correction. He told me that legally Jones can't hold it over our heads if we take the $$, but he said that it will be common knowledge among the GPs who took the $$ and who didn't. His wink and nod told me everything I needed to know. I'm hoping to get my first LP and don't want to end up on somebody's s**** list. He said that after the attorneys get theirs, it will be nickels and dimes once it is all divided. Definitely not worth it for me.

Maxstud's picture
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jonesin wrote:I've only been with Jones for a few years and I've concluded that in order to get ahead you need to look good to the man all of the time. At our regional, I had a conversation with my RL (also a GP) who told me that Jones saw this thing comming a few years ago, but waited for someone to force the issue because money was tight during the correction. He told me that legally Jones can't hold it over our heads if we take the $$, but he said that it will be common knowledge among the GPs who took the $$ and who didn't. His wink and nod told me everything I needed to know. I'm hoping to get my first LP and don't want to end up on somebody's s**** list. He said that after the attorneys get theirs, it will be nickels and dimes once it is all divided. Definitely not worth it for me.That seriously doesn't make any sense at all.  EDJ put $19 million into an account and part of  it will be used to pay attorneys and expenses.  The remaining money will be divided up by everyone who joined the class action through the mailing they sent out.  So EDJ pays $19 million no more no less no matter who joins the class action, so if I'm Weddle I would want my current FAs to join.  Might as well have the money go to people who are still with me then people who have moved on.

jonesin's picture
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Of course it makes sense. I've got every legal right to the $$ as the next guy. But why would I sabatage my long term goals of LP for what is probably going to be chump change in comparison to LP returns. Besides, I knew what I was getting into when I joined, so it wouldn't be the right thing for me to take the money. Don't forget, Jones is being forced to OFFER it to us, not necessarily make sure it ends up in my paycheck. If Jim Weddle wanted me to have the money they would just mail a check. So don't try to justify in your own mind taking the money because you can justify almost anything if you talked yourself into it. Think about all of those ethics videos they show us every year.

Maxstud's picture
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noggin's picture
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I sent mine in the mail today. Of course the GP's are aware of who files, it's just another in a long list of ways to keep the troops in order. I am thankful to be independent.

BACFA's picture
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I, and several others, are current employees of Bank of America.  We all happily collected our checks last month (mine was over $13K pre-tax).  The amounts we received was higher than what was published in the initial "prospectus"   Probably due to the lack of participants. 

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bspears's picture
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If I was an EDJ sales rep and wanting to further my career, I would not take the check.  Big Brother is watching and the cult only wants the faithful.  Why would I promote someone if I thought they were not fully committed to the "Organization"? By taking this check,you fall on the wrong side of the cult thought process..however..if you're having a hard time making ends meet (ala Spiff), by all means, overnight the letter.

Roadhard's picture
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Maxstud is right--the 19 million is already drawing interest--Ed Jones has already paid the 19 million out.  Jones is not going to hold this over your heads!  If you don't apply, then I at LPL, Spiffy's Turncoat (Thank God), will receive part of your share--I appreciate the contribution you and the rest of the Jones FA, who will not apply, will make to my future retirement!  Every penny helps!
 
Just to let all of you know--though I left Jones last year--I truely think this lawsuit was BS.
We not only knew what we were getting into--we stayed on our own accord.  That being said, I will take the check!

jonesin's picture
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I talked to the FA that recruited me (in another region) this morning and he told me that his RL was outright calling brokers in his region and asking them if they are taking the money. If Jones really didn't care, then why the guilt trip? This just confirms my suspicion. I plan on being at this firm for a long time, so thanks, I'll pass.

exEJIR's picture
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babbling looney wrote: I personally thought the overtime law suit was dumb because we all knew when we got into this buisness that we were not paid hourly on a 9-5 job.  However, I'm not about to turn down some extra money
 
I agree with BL.  I almost feel bad about taking the money. 
 

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exEJIR's picture
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Sorry for the triple post.  Posting problems.
 
 

exEJIR's picture
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Roadhard's picture
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JONESIN, so you want to be there for a long time with big brother watching--see I don't care if LPL is watching--the client relationship belongs to me.  But I do understand your position!  By the way, I was at Jones for over 14 years before I got the message!

Catdaddy's picture
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Sorry, being new and all I just don't understand charging a company overtime for my own business.  Just retired from the military and I guarantee THEY don't pay a dime for overtime and I received zero benefit.  At EDJ the harder I work the more I get paid.  Not knocking you folks at all, just IMHO.

Morphius's picture
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Catdaddy wrote: At EDJ the harder I work the more I get paid. You must be paid differently than others because most FAs are paid according to results they get (production), not the effort they put in.  Obviously there is a correlation between the two, especially in the early years when you have a small client base, but you're in for a rude awakening if you think you can significantly increase your pay simply by working harder or longer.

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Morphius wrote: Catdaddy wrote: At EDJ the harder I work the more I get paid. You must be paid differently than others because most FAs are paid according to results they get (production), not the effort they put in.  Obviously there is a correlation between the two, especially in the early years when you have a small client base, but you're in for a rude awakening if you think you can significantly increase your pay simply by working harder or longer. http://www.youtube.com/v/TROhlThs9qY&hl=en&fs=1

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Morphius wrote:
Catdaddy wrote: At EDJ the harder I work the more I get paid. You must be paid differently than others because most FAs are paid according to results they get (production), not the effort they put in.  Obviously there is a correlation between the two, especially in the early years when you have a small client base, but you're in for a rude awakening if you think you can significantly increase your pay simply by working harder or longer.

Only an underachiever would believe that final comment.

Catdaddy's picture
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Morphius wrote: Catdaddy wrote: At EDJ the harder I work the more I get paid. You must be paid differently than others because most FAs are paid according to results they get (production), not the effort they put in.  Obviously there is a correlation between the two, especially in the early years when you have a small client base, but you're in for a rude awakening if you think you can significantly increase your pay simply by working harder or longer.
 
OK tough guy.  For you to read into my comment and insinuate that I don't know that it takes results to get ahead indicates your head is pretty far in a dark personal receptacle.  But results don't come easy, they take hard work.  That's all I was saying.  If you think results come easy then maybe you are a master know it all who hasn't got the guts to face someone-you just like to throw snide comments.   You want to punk me-try again with something a bit stronger.  Last I looked that wasn't what this forum was about.  Last time I checked, without hard work, results don't fall into your lap.

Morphius's picture
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Catdaddy wrote:Morphius wrote: Catdaddy wrote: At EDJ the harder I work the more I get paid. You must be paid differently than others because most FAs are paid according to results they get (production), not the effort they put in.  Obviously there is a correlation between the two, especially in the early years when you have a small client base, but you're in for a rude awakening if you think you can significantly increase your pay simply by working harder or longer. But results don't come easy, they take hard work.  That's all I was saying.  If that was what you were saying to say in the first place, why didn't you actually SAY that in the first place?  We're not mind readers here.But you're still missing the point.  If you had any actual experience in this business you might realize how common a misconception it is for new FAs to think that hard work is the key to their success.  It's not.  You don't get any extra credit for degree of difficulty.  I can't tell you how many rookies over the years I've seen flame out who worked extremely hard, but not smart.  But they were too busy doing what they were doing - harder, faster, longer - when they should have used a fraction of that effort to think instead of just act.  But having lost sight of their goals, they redoubled their efforts.And if you're so thin-skinned that you react like that when someone takes your words at face value and tries to warn you about repeating a very common mistake, you are in for a rude awakening in this business.  Not everyone who corrects or criticizes you is your enemy.  Good luck to you.

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I think every Jones IR would be making a HUGE mistake if they took the money from the settlement.  Their RL would black list them, their hard drives would crash, their cars wouldn't start, their BOAs would be y and uncooperative, their dogs would get mange, their cats would become aloof.  It would be catastrophic.  And I would get more money.
I can only say what every other independent says who left Jones.  LIFE IS GREAT!
 
 

Borker Boy's picture
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I read today that any amount that's been set aside, but not "claimed", will be added back to the firm's earnings.

Jones99's picture
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I read the same info about the unclaimed settlement $ being returned to Edward Jones earnings.  There was an 800 number to speak directly to the firm handling the settlement, so I called.  It is not like any class action settlement I have ever seen.  The deadline to submit a request is Aug 16.  The settlement firm collects these to verify those entitled to a claim.  They meet with Jones, and I sure he said the courts, to determine the amount that the claimants in each class receive per month worked.  That deadline is January 9th, 2009.  At that time any residual left off the money set aside to pay the claims, that is not due to the claimants, IS returned to Jones.
He did make it sound like if we did not take the check, more $ would go back to Jones.  It is also stated on the Jones FAQ that the firm WILL be provided with a list of everyone who makes a claim in this settlement.

avise's picture
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How did Jones get away with such a small settlement? Yesterday MS agreed to $50MM.  UBS and SB paid out $90-$100MM each. Those new IR's even got to work in real offices. Jones with the "itinerant peddler" model and all the costs it lards up on newbies comes out of this with only a $19MM settlement? 

Spaceman Spiff's picture
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Perhaps they had already heard about the other settlements we had to deal with and went easy on us.  Or perhaps our attorneys are just better at their jobs than the ones at MS, UBS, and SB. 
 
We'll never know for sure.  The question is, how much of the $19 mil will actually be paid out?  If the only people who file are the former EDJ guys, Jones will end up pocketing a large chunk of that $19 mil.  Slick, huh? 
 
 

Maxstud's picture
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avise wrote:How did Jones get away with such a small settlement? Yesterday MS agreed to $50MM.  UBS and SB paid out $90-$100MM each. Those new IR's even got to work in real offices. Jones with the "itinerant peddler" model and all the costs it lards up on newbies comes out of this with only a $19MM settlement? 
Maybe because of this, from Registered Rep:"Morgan was the last among Merrill Lynch, UBS, and Smith Barney to
settle with its brokers nationally. (UBS and Smith Barney had paid its
brokers $89 million and $98 million respectively by mid 2006. Merrill’s
national amount was not disclosed.) Morgan’s late deal may have paid
off in dollars given that there has been a bump (or two) in the road in
the last two years since those firms settled.

In
December 2006, the same week Merrill’s national settlement was
announced, the Department of Labor, in response to a request by the
Securities Industry and Financial Markets Association, issued an
eight-page letter stating brokers are not entitled to overtime pay
after all."

B24's picture
B24
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Yeah, "Whoops, sorry about all that litigation. "

MISS JONES's picture
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All I know is I sent out my letter of consent today. I can't wait to get some green from the overtime lawsuit!

Miss J

Jones99's picture
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Spiff...have you made up your mind on filing the form?
 
Just wondering,
 
Jones99
 
By the way, when I started, Jones promised me a $1500 per month training SALARY for the first two months.  Imagine my surprise when the first check was for only $1200 gross pay.  I called HR to inquire about the discrepancy....since Jones put our official start date for our training class on July 5th, they felt justified in docking us for 6 days of pay based on a 30 day month.  I suppose they did that to all training classes at the time, but it still pisses me off nine years later.  Maybe I can get my $300 back if I file the request form.

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You mean they didn't pay you for the days you hadn't yet been working?  Imagine that.  The last company I worked for didn't start paying me until my first day of work, either.  Boy that pissed me off.

norway401's picture
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Okay let me understand. You are paid based on a 30 Day Month? The salary is 1500.00 per month.
1500 divided by 30 = 50.00 per day. You did not work six days in the month.
50.00 mulitpied by 6 = 300.00
1500 subtract 300 = 1200.00 is the amount paid.
This is simple arithmetic.
You are paid 30,000.00 per annum. You start the first of Feb/08 , does that mean on the 31/Dec/08 you are paid 30K , or does the employer have to add the month of January/08 that you did not work to pay you 30K???? Where were you taught basic arithmetic skills?

norway401's picture
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Ice - not a Jones thing. New Math! If I don't have a calculator or is more than the fingers on two hands I think perhaps APPLIED MATH. Something else that is really disconcerting these people are dealing with other people's money!!!!!!

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Jones99 wrote:Spiff...have you made up your mind on filing the form?
 
Just wondering,
 
Jones99

 
I haven't had time to think about it in the last week.   I've not had a good conversation about it with anyone in my region.  So, I'm still undecided.

avise's picture
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Jones99 wrote:By the way, when I started, Jones promised me a $1500 per month training SALARY for the first two months.  Imagine my surprise when the first check was for only $1200 gross pay.  I called HR to inquire about the discrepancy....since Jones put our official start date for our training class on July 5th, they felt justified in docking us for 6 days of pay based on a 30 day month.  I suppose they did that to all training classes at the time, but it still pisses me off nine years later.  Maybe I can get my $300 back if I file the request form.It's not about the math and pro rata payments. This is cheap and tacky. It's a very Bush League attitude that I hope has been washed away from the much bigger, better-known Jones of today. BTW: Regulators raided AG Edwards/Wachovia today: "Regulators from Missouri, Illinois, Massachusetts, New
Jersey, Pennsylvania and a sixth state that asked not to be
identified were part of the team entering Wachovia Securities'
headquarters, Missouri officials said."

Jones99's picture
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B24 wrote:You mean they didn't pay you for the days you hadn't yet been working?  Imagine that.  The last company I worked for didn't start paying me until my first day of work, either.  Boy that pissed me off.
 
First of all I totally agree with AVISE, not about the math...just Bush League tactics to cut $30k off the training costs.
 
To Mr. B24, you are using an incorrect analogy.  Everyone in that training class had been through the Jones hiring process, drug testing, etc.  Everyone in that class received all training and study materials by the 28th of June.  By June the 5th, I had already finished the first three days of the study materials.  Jones CHOSE our "official" start date of July 5th.  They promised us TWO months of training salary (not pro-rated), and then they docked everyone $300.  Even if, as you state, we weren't working before the 5th, we did work for Jones on the 5th....they docked us for 6 DAYS, not 4.   Just an FYI.

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Spaceman Spiff wrote: Jones99 wrote:Spiff...have you made up your mind on filing the form?
 
Just wondering,
 
Jones99

 
I haven't had time to think about it in the last week.   I've not had a good conversation about it with anyone in my region.  So, I'm still undecided.

Spiff- My perspective is.. There is free money out there waiting for these former brokers to claim why wouldn't you want some of the money if you are allowed to get it?? I don't care if my regional leader is pissed or anyone else is pissed for that matter. I work here for myself and myself alone. If I can help people along the way great but at the end of the day I do what I must do to look out for myself and when i think of FREE money that may go to a segment of the firm and not me to that just don't sit well. I want what should be mine.

I would fill out the consent form and mail it in. Question: Were you mad about the clients on your book that requested the mutual fund revenue sharing claim? No, neither was I.. It didn't come out of my commission and neither does this overtime lawsuit claim. The money is already sitting in a sub-account waiting for distribution. So bottom line- Just do it!

Miss J

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MJ - Interesting perspective.  I'll have to make a decision soon.  I think the overtime settlement just might be enough to buy a new plasma for the office.  Hmm....
 
Jones99 - I'm having some difficulty figuring out your complaint about the paycheck.  So, Jones says your official start date is July 5.  That means you don't officially go on the payroll until July 5.  However,  you got the study materials about a week before you were officially supposed to start.  Did the study schedule start before July 5 or did you just simply do some extra work before your official start date?  My assumption would be that if you were supposed to contractually receive 2 months of $1500 a month salary for a total of $3000, then you have a right to expect a total of $3000.  Now, it may turn out that you get $1200 in month one, $1500 in month two, and then $300 in month three.  Jones can't just dock your pay.  There would be so many HR complaints that the company would probably get shut down. 

footsoldier's picture
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Spiff-
 
Are the GP's implying that  they are taking names? 
 
I thought the path Weddle took (at least what I heard in the California settlement from FA 's out here) was the high road. Telling reps that he would rather have FA's who still work at the firm get it rather than guys like me who left.  Why would you even consider not taking the money?
 
 

Spaceman Spiff's picture
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I think it's just the stigma of taking a check like that.  You know, the fear of the GPs knowing if you did or didn't and somehow blackballing you when the next LP offering comes out.  Now, in the verbage of the letter from the settlement attorneys it says that EDJ can't hold it against you if you choose to participate. 
 
The GPs aren't implying anything.  They're not allowed to comment on the situation.  If Weddle did say that, I would agree with him.  If Jones is going to pay the money anyway, I'd just as soon have some of it hit my pocket rather than put that much more in yours. 
 
The other spin I've heard is that you, for instance, may only be eligible for say $1000.  I may be eligible for $2000, but choose not to participate.  In that instance, my $2000 stays in the coiffers and eventually funnels back to Jones.  So, it's better for Jones if we don't take the checks.   
 
These are the conversations I have with myself while I'm driving home.  The guy on one shoulder says take it or someone else will.  The other says, no, be a good Jones guy and let them keep it.  I would love to know for sure what happens to the money that a guy like me might not claim.  Does it get split between everyone else who does participate or does Jones get to keep it. 
 
 

norway401's picture
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Joined: 2007-10-16

Spiff , I do think that your thought process is exactly what any employee would have regardless of the company. Always that sense of is this going to come back to haunt me?
Your response is an honest and fair comment.

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