Bank of America agreed to pay $4.28 million to settle claims it failed to pay accrued, unused vacation to departing employees, as reported by the National Attorney Review in its settlement report. The payout covers former employees in three states who left with a positive vacation balance and received no payout. A vacation payout in this case means wages owed for earned time off that was not used before separation.
The case is Nguyen et al. v. Bank of America, N.A., in federal court in California. The court has not decided who is right.
Official resources:
- Read the official notice from Openclassactions — Use this primary source to verify the official announcement.
- Read the official notice from Nationalattorneyreview — Use this primary source to verify the official announcement.
Table of Contents
- Who qualifies for payment?
- How is your payment figured?
- Do you need to file a claim?
- How do you dispute the amount?
- What about taxes and liability?
Who qualifies for payment?
The settlement covers former Bank of America employees who worked in California, New York or Illinois. To qualify, a worker must have had a positive vacation balance at separation and received no payout for that time. The official settlement site lists these three limits as the core eligibility test. Covered work periods run through Sept. 1, 2026.
The official FAQ sets different start dates by state. California coverage starts Sept. 28, 2019, New York starts Sept. 28, 2017, and Illinois starts Sept. 28, 2013.
- Worked for Bank of America in California, New York or Illinois during the covered period
- Had accrued, unused vacation left at separation
- Received no payout for that unused vacation
How is your payment figured?
Each notice estimates the individual payment from unused vacation hours, pay rate and state law. State law matters because payout rules differ across California, Illinois and New York. Your notice amount reflects the records tied to your job and separation.
The estimate is not final if records are wrong. Workers can challenge the hours, rate or calculation. Keep pay stubs, separation letters or vacation balances if you have them.
Do you need to file a claim?
No claim form is needed. Payments are automatic for identified class members, according to the official settlement site in its payment notice. If you got a notice, you do nothing to stay in the group.
Read the notice carefully even though no claim is due. Check your name, address and estimated amount. Update your mailing address with the administrator if you moved.
How do you dispute the amount?
Use the Adjustment Form with supporting documents. The official settlement site says class members may dispute the estimate this way. Send proof such as time records, HR emails or final pay details. The opt-out, objection and Adjustment Form deadline is Nov.
27, 2026, according to the official Important Dates page in its deadline schedule. The Final Approval Hearing is Dec. 17, 2026 at 10:00 a.m. PT. No payments go out until after final approval.
What about taxes and liability?
Settlement payments will be split for taxes. Half is subject to withholding and reported on a W-2. Half is reported on an IRS Form 1099.
Bank of America denies wrongdoing, the official FAQ states. The bank says it always had processes to pay unused vacation at separation. The court has made no ruling on the merits.