Chase, Bank of America crack down on startling workplace trend

After the banking industry faced major criticism for allegedly overworking its employees following the death of Leo Lukenas III, a 35-year-old Bank of The U.S. employee who died after working 100-hour workweeks, two of Wall Boulevard’s banking giants are making some major changes.

Bank of The U.S. BAC and Chase Bank (JPM) have rolled out new rules to help put in force limits on the choice of hours its bankers are working so you're able to in general be in a position to crack down on overwork, per a new report from the Wall Boulevard Journal.

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The Journal revealed that Chase, typically, will cap work hours for its junior investment bankers to 80 hours every week. Probably essentially the most convenient exception to this rule may perhaps be if the bankers are engaged on a reside deal.

Bank of The U.S., on the choice hand, will likely be rolling out a new timekeeping tool so you're able to in general be in a position to require junior bankers to share more small print about how they spend their time. The bank already has a cap on workweek hours, but an investigation from the Journal last month found that employees are allegedly often instructed by managers to lie about the amount of hours they work that may well keep away from scrutiny from Human Resources.

The impact of Lukenas’ death

Lukenas’ death dropped at light the toxic work culture inside the banking industry. Lukenas reportedly died from a blood clot in his heart in May amid his seek for a new job after facing stress from allegedly working 100-hour workweeks at Bank of The U.S..

Douglas Walters, a recruiter who was involved with Lukenas months earlier than his death, said in an interview with Reuters in May that Lukenas was having a look to stumble on a job with an improved work-life balance, and he was even willing to take a pay cut so you're able to in general be in a position to arrive that.

“He made a comment saying like, 'Hey, I may perhaps trade hours of sleep for a ten% (pay) cut,'" said Walters inside the interview.

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Some days after Lukenas’ death, some Bank of The U.S. employees even contemplated a walkout on social media so you're able to in general be in a position to fight for better working conditions equivalent to stronger policies that put in force more caps on work hours.

Lukenas’ death also prompted the Journal to launch its investigation into Bank of The U.S.’s work culture. The investigation found that some workers on the corporate often pull all-nighters engaged on projects. One former employee even revealed that she and her team on the corporate often worked until 5 a.m. and was allegedly instructed to lie about their hours.

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“Our practices are clear and we predict all employees including managers to follow them,” said a Bank of The U.S. spokesperson in an announcement to the Journal in August. “When we’ve learned of violations, disciplinary actions have been taken.”

Even earlier than Lukenas’ death, the banking industry has been exposed for having employees work long hours. In line with a 2023 survey from Wall Boulevard Oasis, it found that investment banking analysts, on average, work over 70 hours every week, and go to sleep past 12 a.m.

“Analysts and Associates inside the team work extremely hard (without exaggeration, 100+ hour weeks are kind of common and a little bit normalized),” said a Barclays industrials analyst inside the survey.

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