A lawsuit against PricewaterhouseCoopers for denying its unlicensed associates overtime pay and other benefits mandated by US labour laws has been granted class action status in California's Eastern District’s federal court and a similar class-action lawsuit against Deloitte & Touche has wound up in California's Central District’s federal court, starting the ball rolling for USA-wide litigation against Big Four firms.

PwC will defend the lawsuit ‘vigorously’, spokesman David Nestor told CFO.com, noting ‘associates and senior associates are appropriately classified as exempt employees under California law and are provided with the beneficial treatment associated with their exempt status’.

Deloitte Tax and Deloitte & Touche is also forced to ‘vigorously’ defend itself against complaint charges that it violated state labour laws by classifying and treating tax associates and tax seniors employed in California as exempt employees, and therefore ineligible for overtime pay.

Armond Marcarian, lawyer for the plaintiff, estimates the Deloitte class size will rise to more than 1,000 former and current employees, representing millions of dollars worth of back pay plus interest and penalty awards. The trial is set for October 2008.

Further reading:

Big Four in line of fire from huge class action

KPMG Canada sued for unpaid overtime