Judge Allowed Overtime Lawsuit Against IBM to Proceed
A federal court ruled that 19 executive assistants may pursue claims alleging unpaid overtime for work performed during scheduled breaks.
Updated on Sept. 18, 2026 in Employment

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A federal judge has cleared the way for a class of 19 current and former IBM executive assistants to take their overtime pay claims to trial. While some allegations were dismissed, the case regarding withheld compensation for work done beyond set schedules remains active.
Why it matters
This litigation highlights the importance of precise record-keeping for non-exempt employees who perform work outside of standard hours or during meal breaks. The court's decision signals that these specific wage disputes meet the threshold required to move forward in the legal process.
The lawsuit involves 19 current or former IBM executive assistants seeking back pay for uncompensated hours. While the trial will address these specific overtime claims, allegations regarding inaccurate wage statements and off-schedule work pay were dismissed.
The players
IBM
A multinational technology corporation that provides enterprise computing services and software products to businesses and consumers.
Philip Halpern
A federal judge who oversees legal disputes and ensures compliance with labor and employment law standards in court.
The details
The court ruling addresses how employees are compensated for work performed during designated meal breaks or outside of normal hours. Because the plaintiffs alleged that their employer withheld pay for this time, the judge allowed the core overtime claims to advance toward a trial. Other claims, including those related to untimely payment and wage statement accuracy, were rejected due to insufficient allegations in the complaint.
Timeline
Judge Philip Halpern issued the ruling on September 17, 2026.
Money Landscape
This development follows a pattern set by the Fair Labor Standards Act overtime requirements regarding compensation for non-exempt staff. It marks a continuation of judicial scrutiny over how large firms manage and document compensation for support-level roles.
Employees who work during meal breaks or beyond their scheduled hours should document these instances to ensure accurate payroll reporting. If you believe your pay does not reflect hours worked, consider discussing your company's time-tracking policies with a qualified employment attorney.
The takeaway
This case underscores the financial necessity of maintaining detailed personal records of all hours worked beyond your scheduled shift. If you are a non-exempt employee, verify that your pay stubs accurately reflect all time spent on work-related tasks during designated rest or lunch periods.
Further reading
Learn more about federal regulations regarding compensation in the Employment section.
Source note: This article includes information reported by Bloomberglaw.
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