Merrill Lynch faces, yet, another overtime lawsuit, but this one looks like it will be different because the lead lawyer aims to overhaul the firm's system of compensating its sales associates.  Linda Friedman, of Stowell & Friedman, represents Merrill sales assistant Nancy Martignago, said the suit will the address the entire system of hiring, promotion, supervision and compensation of sales assistants at the firm - all of which is based on a long-standing culture of gender discrimination at the firm.  Ms. Friedman expects upwards of 5,000 plaintiffs to participate in the class action.

Allegations Against Merrill.   Lawyers for the plaintiffs claim in the suit that: 

• Martignago was told by her supervisor not to work overtime, even though her financial advisor expected her to stay late.
• Her direct supervisor refused to sign overtime requests despite knowing that her employees were working more than 40 hours a week.
• Up to half of sales assistants' compensation comes from bonus paid at the discretion of their financial advisors, which opens assistants to intimidation and discrimination.
• Out of fear of angering their financial advisors, few assistants openly express their concerns about overtime pay.
• Being paid by Merrill as well as by individual financial advisors introduces a conflict of interest that further compromises the assistants' position.

For its part, Merrill says that it disagees with the claims and will "vigorously" defend itself in court.  [Registered Rep, 8/3/11]