Job Misclassification
Employees are often improperly classified as exempt from overtime pay when
the nature of their work entitles them to overtime pay under the law.
Loan Officers
Banks and mortgage companies have routinely misclassified their loan officers
(also referred to as mortgage originators, loan originators, mortgage
consultants, and account executives) as exempt from overtime pay and minimum
wages. Over the past ten years, our firm has represented more than 10,000
loan officers from across the country in lawsuits against banks and mortgage
companies for unpaid wages. In these and other cases, most courts have
found that loan officers are entitled to minimum wages and overtime pay
when their primary job duty is selling loans from inside an office.
These rulings are now supported by the United States Department of Labor,
which recently issued an important publication reaching the same conclusion. Click
here to read that publication. Just because you reached an agreement with your
employer that you will be paid on a salary, salary plus commissions, or
commission basis, does not mean that you are not entitled to your overtime
pay. You cannot waive your minimum wage and overtime rights by an agreement
with your employer.
Many employers have reclassified their loan officers and are now paying
minimum wages and overtime pay. Loan officers who are reclassified may
have a claim for the minimum wages and overtime pay they were denied prior
to the reclassification. Even if the employer pays some of these pre-reclassification
wages due, an employee may still have a claim if the employer did not
compensate them for all the hours they worked.
If you are a loan officer and were not paid minimum wages or overtime pay,
you may be able to make a claim for your unpaid wages.
Underwriters
Banks and mortgage companies often misclassify underwriters as exempt from
overtime pay and minimum wages. A recent court ruling from the Second
Circuit of the United States Court of Appeals confirmed that many mortgage
underwriters are not exempt from overtime pay under the “administrative
exemption,” and therefore, are entitled to overtime pay when they
work more than forty hours per week. Click
here to read this decision.
Many employers have reclassified their underwriters and are now paying
overtime pay. Underwriters who are reclassified may have a claim for the
overtime pay they were denied prior to the reclassification. Even if the
employer pays some of these pre-reclassification wages due, an employee
may still have a claim if the employer did not compensate them for all
the overtime hours they worked.
Off-the-Clock Work
Many mortgage companies and banks pressure their hourly employees to work
off-the-clock and not record all their hours worked. Some have a policy
that overtime is only paid when that time is pre-approved by management.
Consequently, hourly mortgage employees regularly have to underreport
their hours worked and, thus, are not paid the full amount that they deserve.
Employees are entitled to be paid for the time they work, regardless of
a policy that the time must be pre-approved.
Meal and Rest Break Violations
Many mortgage employees have to work through their meal or rest breaks
because of the amount of work they have to get done and goals they have
to meet. Employees are entitled to be paid for the time they work, even
if they are working during a meal or rest break. Moreover, certain states
require that employees be given their allotted breaks every day or employers
will be held liable under state law.
