Extreme working hours, fatal consequences: Two large US banks revise their policies after the death of an employee

In response to the tragic death of 35-year-old employee Leo Lukenas III, JPMorgan Chase and Bank of America have announced significant changes to work schedules for their junior employees. Lukenas, a former Green Beret and banker, reportedly worked up to 100 hours a week before his untimely death. His case has brought to light the harsh reality of overwork in the banking sector and prompted a reassessment of employee well-being in an industry known for its relentless demands.

Changes to time recording measures after the investigation

The banking sector, especially in the US, has struggled with the problem of overwork for years. Young bankers, eager to make a career and climb the corporate ladder, often find themselves caught in a vicious cycle of excessive working hours and poor work-life balance. It is not uncommon for many to work 100-hour weeks to meet the demands of senior bankers and clients.

According to an investigation by The Wall Street Journal, Bank of America had ignored its own company policies on its employees' working hours. The report goes on to say that starting next Monday, junior bankers at the institution will have to log their hours and workload daily. This adjustment is intended to provide more transparency to senior managers and ensure that employees do not exceed the previously established but often overlooked limit of 80 hours per week.

JPMorgan Chase has been monitoring the working hours of junior bankers for some time and is now introducing stricter measures. In August, the company began enforcing an 80-hour weekly limit for its junior bankers. These reforms mark a significant shift in an industry that puts productivity and profit above employee well-being.

Wall Street insiders skeptical of permanent changes

Despite the recent reforms, many in the industry doubt that these changes will be effectively enforced in the long term. A former junior banker at Bank of America told Business Insiderraised concerns that the newly implemented guardrails may not be consistently followed. “They can track hours and promise days off, but at the end of the day, if there is work to be done and a senior banker expects it, that work will get done. That's how they make money,” the former banker explained.

A finance professor at a prestigious business school warned that young bankers who strictly adhere to the 80-hour limit could be disadvantaged. “If a banker becomes known as someone who limits their hours to 80, they risk being marginalized and given less desirable tasks,” the professor noted. Without the commitment of senior management, the professor believes the timekeeping reforms will not bring about meaningful change.

How common are long working hours in US banks?

According to a report by eFinancialCareers, mergers and acquisitions (M&A) professionals work an average of 67 hours per week, while commodity trading and sales professionals work just 41. Weekly work hours are often less than 50 hours, although junior bankers often work significantly more than this average.

Some reports suggest that young employees are exaggerating their work hours and not taking daily breaks or time off. However, the COVID-19 pandemic has made things even worse for many, with the lack of variety in the workday and limited social interaction leading to increased feelings of isolation and burnout. In some cases, the consequences of overwork have been severe, as illustrated by the recent death of a 60-year-old Wells Fargo employee who died just days after clocking in for an extended shift.

The future of time tracking in banking

The introduction of daily time tracking and the enforcement of a weekly cap of 80 hours are intended to reduce employee burnout and improve work-life balance. However, the long-term impact of these changes remains uncertain. With the financial sector putting enormous pressure on its employees to meet performance targets, it is unclear whether banks will be able to balance operational demands with the wellbeing of their workforce.

Reforms introduced by JPMorgan Chase and Bank of America could mark a turning point in the way the industry approaches working hours, potentially paving the way for a healthier, more sustainable work environment. But the success of these changes will largely depend on the determination of senior management to prioritize employee well-being over short-term profits.