Financial giant Capital One has agreed to pay $20,000 to settle a lawsuit brought by a former learning associate who accused the company of misclassifying her as exempt from overtime pay, according to an order issued Monday by U.S. District Judge Henry E. Hudson.

The Virginia federal judge signed off on the settlement between Capital One Services LLC and plaintiff Anne Fierbaugh, officially bringing an end to the dispute with a dismissal with prejudice, meaning the case cannot be refiled.

Former Employee Claimed Misclassification Under Federal and State Law

Fierbaugh’s lawsuit, filed in December 2024, alleged that Capital One violated both the Fair Labor Standards Act (FLSA) and the Virginia Overtime Wage Act by wrongly classifying her and others in similar roles as overtime-exempt employees.

She contended that the duties of learning associates were comparable to those of teacher’s aides, asserting that they primarily provided administrative and instructional support rather than performing independent or managerial tasks that would justify an overtime exemption.

Her complaint argued that this classification allowed Capital One to avoid paying proper overtime wages despite employees regularly working beyond standard hours.

Judge Previously Rejected Capital One’s Dismissal Motion

Earlier in September, Judge Hudson rejected Capital One’s motion to dismiss the suit, ruling that Fierbaugh could simultaneously pursue federal and state overtime claims.

That decision signaled the case had enough merit to proceed toward trial before both parties ultimately reached a private settlement agreement, the terms of which were approved this week.

Settlement Brings a Quiet End to a Growing Class of Overtime Disputes

The resolution marks the quiet close of yet another overtime misclassification battle involving major employers.
Labor attorneys say that similar FLSA cases have been increasingly common in recent years, particularly as companies reassess how training, support, and administrative positions are classified under federal labor law.

While Capital One admitted no wrongdoing under the settlement, the payment underscores the cost of potential wage compliance missteps — even for one of the country’s largest financial institutions.