WASHINGTON, Sept. 27 (UPI) — The U.S. Department of Labor announced it will review all of Wells Fargo‘s workplace practices following the revelation of widespread fraud by employees.
In a letter Monday to Sen. Elizabeth Warren, D-Mass., Labor Secretary Tom Perez wrote: “Given the serious nature of the allegations, the recent actions of our federal partners, and recent media reports, I have directed enforcement agencies within the Department to conduct a top-to-bottom review.”
The review comes after members of Congress asked for an investigation into Wells Fargo’s wage, overtime and working-hour policies, and after the bank admitted employees opened over 2 million sham accounts, most unauthorized by customers. Wells Fargo gained $2.6 million in fees through the accounts, which were opened between 2011 and 2015.
The bank agreed to a $185-million civil settlement, which included fines and restitution, and fired about 5,300 employees. It also eliminated quotas for bankers, branch managers and district managers, beginning in January.
Warren and other member of Congress requested the Labor Department investigation after a Senate Banking Committee hearing on Sept. 20 in which Wells Fargo CEO John Stumpf was questioned about the bank’s pressure tactics used to get employees to open accounts for customers. The House Financial Services Committee scheduled a similar hearing for Thursday.
Two former Wells Fargo employees sued the bank in California Superior Court last week, claiming wrongful termination. Alexander Polonsky and Brian Zaghi said they were fired because they “did not meet their impossible quotas” and were terminated “so that all other employees would learn that they must engage in these fraudulent actions in order to meet the unrealistic sales quotes or else lose their jobs.”
