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Former employees who worked at Bank of America in California, New York or Illinois during certain periods and who had a positive vacation balance at the time their employment ended may be eligible to receive a cash payment from a class action settlement.
Bank of America agreed to pay $4.28 million to settle a class action lawsuit alleging it failed to pay accrued, unused vacation to certain former employees at the time of separation in violation of state labor laws and breach of contract.
Who are the class members?
Class members must meet all of the following criteria:
- Bank of America employed them in California, New York or Illinois.
- The bank employed them during the following periods:
- California: Sept. 28, 2019, through Sept. 1, 2026
- Illinois: Sept. 28, 2013, through Sept. 1, 2026
- New York: Sept. 28, 2017, through Sept. 1, 2026
- At the time of separation from employment, they had a positive vacation balance. This means the sum of vacation accrued in the year of separation plus any vacation carried over from the prior year was greater than the amount of vacation recorded as used in Workday for the year of separation.
- They did not receive any payout for accrued but unused vacation at the time of separation.
How much can class members receive?
The amount each class member can receive depends on several factors, including the amount of unused vacation, their hourly rate of pay and the state where they worked.
- Every class member will receive a minimum payment of $200.
- The settlement administrator will distribute the remaining net settlement fund based on each class member’s calculated losses.
No action needed to receive compensation
Class members do not need to submit a claim form to receive payment. The settlement administrator already has the necessary employment records to determine eligibility and calculate payments. If eligible, class members will automatically receive a check at their last known address. If a class member moves, they should notify the settlement administrator as soon as possible to update their address.
If a class member believes the information used to calculate their payment is incorrect, they may submit the adjustment form included in their settlement notice along with supporting documentation, such as pay stubs or vacation records, to the settlement administrator by Nov. 23, 2026.
Settlement administrator's mailing address: Unused Vacation Settlement Administrator, P.O. Box 2004, Chanhassen, MN 55317-2004
Settlement administrator's email address: UnusedVacationSettlement@noticeadministrator.com
Settlement administrator's phone number: 866-983-3173
Payout options
- Payment by check mailed to the last known address of each eligible class member
- Tax withholding applies to 50% of each payment, and the settlement administrator will report it on a Form W-2.
- The administrator will report the remaining 50% on a Form 1099.
$4.28 million settlement fund breakdown
The $4,280,000 million settlement fund includes:
- Settlement administration costs: Up to $75,000
- Attorneys' fees: Up to $1,426,667
- Attorneys' expenses: Up to $250,000
- Service awards to class representatives: Up to $10,000 each ($30,000 total)
- Payments to eligible class members: Remainder of the net settlement fund
Important dates
- Deadline to opt out or submit adjustment forms: Nov. 23, 2026
- Final approval hearing: Dec. 17, 2026
When is the Bank of America payout date?
The settlement administrator will issue payments to eligible class members within 20 days after the court resolves any appeals and grants final approval of the settlement.
Why is there a class action settlement?
The class action lawsuit claimed Bank of America failed to pay certain employees for accrued but unused vacation time at separation in violation of labor laws in California, New York and Illinois. It alleges breach of contract and unfair competition.
Bank of America denied any wrongdoing but agreed to settle to avoid the burden and uncertainty of continued litigation.
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