Riverside, Calif.-based Provident Savings Bank F.S.B. on Dec. 18 entered into a memorandum of understanding with regard to claims it had misclassified certain employees and accordingly failed to pay correct compensation.
The accord would settle two lawsuits from December 2012 and May 2013 for an aggregate settlement payout of $1.8 million. Parent company Provident Financial Holdings Inc. will record an additional $650,000 in litigation reserve in the second quarter of fiscal 2018, so as to fully reserve for the amount.
The settlement is still subject to court approval.
