Interactive Brokers LLC (IB) has reached a proposed $1.825 million settlement overtime lawsuit filed by its customer support employees. The proposed order was available for court approval on September 16, 2025, in the U.S. District Court for the Northern District of Illinois.
The case was brought by Tyree Thomas, Jake Cirame, and Mark Alberts, who, along with other similarly situated employees, alleged that IB misclassified them as exempt from overtime pay. The plaintiffs, who worked in customer support roles over the past three years, claimed that the firm failed to pay them for hours worked beyond 40 per week, in violation of the Fair Labor Standards Act (FLSA).
Interactive Brokers to Pay $1.8M to Settle Overtime Lawsuit
According to the complaint, plaintiffs frequently worked extended hours, often ranging from 43 to 50 hours weekly, and rarely took meal or rest breaks. The lawsuit also cited IB’s failure to maintain accurate time records, a key requirement under the FLSA, which mandates overtime pay at one-and-a-half times an employee’s regular rate for hours exceeding 40 per week.
The settlement, subject to court approval, establishes a Gross Settlement Fund of $1,825,000 to cover awards to opt-in plaintiffs, general release payments of $10,000 each to the three named plaintiffs, attorney fees, and settlement administration costs. The agreement assumes no more than 32,120 workweeks, representing approximately 298 collective members.
If approved, the settlement would resolve the case on a collective-wide basis and dismiss the lawsuit with prejudice. The court will also review whether the proposed settlement notice fairly reaches the putative collective members and whether to approve the plaintiffs’ request for one-third of the settlement fund for legal fees.
“This agreement provides meaningful monetary relief to employees who dedicated significant hours to serving Interactive Brokers’ customers,” the filing noted.
The case highlights the ongoing scrutiny financial firms face regarding employee classification and compliance with overtime regulations, emphasizing the importance of accurate recordkeeping and fair compensation practices.
Company Overview
Interactive Brokers caters to diverse requirements, offering competitive fees alongside a wide array of trading options such as stocks, ETFs, options, futures, and other global assets. It distinguishes itself as a top-tier brokerage, particularly appealing to traders and investors seeking a straightforward trading experience. With Interactive Brokers’ user-friendly platform, users can execute trades seamlessly, benefiting from competitive spreads that enhance cost-effectiveness.
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