Wells Fargo accused of using 'unpaid time away, to pay for settlements

CHARLOTTE, N.C. — Charlotte's largest banking employer, Wells Fargo, is facing accusations its new "unpaid time away" guidelines for contractors is unfair and will hurt contractors and their families financially.

Whistleblower 9 was contacted by one of those contractors who provided photos of an internal Wells Fargo policy set to take effect April 2, 2018 titled: "Unpaid time away guidelines for managed resources in the U.S."

The policy requires contractors to take upwards of two-weeks per year of "unpaid time away" depending on their work assignment duration along with no compensation for observed holidays.

Channel 9 has been told there is a feeling internally that this cost saving measure is a direct response to the penalties and settlements stemming from the Wells Fargo "fake account" scandal dating back to late 2016. The whistleblower believes that the contractors are literally paying for the mistakes of others.

RELATED: Fake accounts scandal could cost Wells Fargo $400 million

The insider said in an interview: "I have held discussions with both full-time employees and managed resources and we believe that Wells Fargo is using the policy to fund the losses incurred from the recent settlements," and went on to say he feels, "very frustrated" and "betrayed."

The banking giant has agreed to pay more than $375 million dollars in different fines and legal settlements after various scandals including the acknowledgment the bank created millions of unauthorized customer accounts to reach sales goals.

The Wells Fargo contractor said the decision will greatly impact families across the country and right here in Charlotte.

RELATED: Wells Fargo continues its attempt to regain trust from customers

"It makes it harder for all of us. We need to put food on the table and support our families just like the executives do."

Wells Fargo acknowledged the "unpaid time away" plan after being contacted on Wednesday by Whistleblower 9 and said in a statement it's "responsible to its customers, shareholders, and team members for achieving optimal operational effectiveness."

The company denies the cuts are a direct response to their legal settlements and maintains the decision stemmed from an annual review that implemented industry-wide best practices. However, the insider said he believes Wells Fargo is "more concerned about their shareholders than their contractors."

The whistleblower says the policy was initially floated last year but believes it was shelved because of push back then was announced again in the last few weeks.

He said he believes the policy send a message that contractors are not valued and many are now looking at other employment opportunities.

"My message would be to please reconsider. We have families to support just like you do."

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Wells Fargo Full Statement:

"...as part of our annual review of our Contingent Workforce program, which is standard business practice for us, we found opportunities to better align our program with industry best practices. These new guidelines provide a consistent approach to managing work assignments, work schedules and controlling costs for managed resources in the U.S.

Operating in an efficient and effective manner continues to be a key focus for Wells Fargo. The company is responsible to its customers, shareholders, and team members for achieving optimal operational effectiveness. Good management practices for managed resources require oversight for providing work directions, clarity on questions and escalation support.

The number of unpaid days is not mandatory but serves as a guideline.

Cox Media Group