U.S. Department of Labor Announces that Loan Officers May Be Entitled to Overtime Pay

On March 24, 2010, the U.S. Department of Labor ("DOL") issued an opinion letter stating that loan officers may be entitled to overtime pay under the federal Fair Labor Standards Act (“FLSA”). The DOL found that, because the primary duty of loan officers is to sell mortgage loans, they cannot qualify as “exempt” under the FLSA’s “administrative” exemption. In so doing, the DOL rescinded an opinion letter issued during the previous Administration holding that loan officers were exempt. A copy of the March 24, 2010 opinion letter may be found here.

If you worked as a loan officer at any time during the last three years (or during the last four years if you worked in California), you may be eligible to recover overtime pay for any weeks in which you worked more than 40 hours per week during that period. For a free, no-risk consultation about your legal rights, please contact attorney Jim Clapp at (858) 623-4200; email: jclapp@sdlaw.com.



U.S. Court of Appeals Rules that Loan Underwriters May Be Eligible for Overtime Pay

In Davis v. J.P. Morgan Chase & Co., 587 F.3d 529 (2nd Cir. November 20, 2009), the U.S. Court of Appeals ruled that loan underwriters may be entitled to overtime pay. Michael Davis was employed as a loan underwriter for J.P. Morgan Chase and frequently worked more than 40 hours per week. Nevertheless, the company argued that Mr. Davis was exempt from overtime pay under the “administrative” exemption of the federal Fair Labor Standards Act (“FLSA”). The Court of Appeals disagreed, holding that the primary duty of Mr. Davis and other J.P. Morgan Chase loan underwriters was to assist in the sale of loan products. Consequently, the court ruled that Mr. Davis and other loan underwriters were eligible for overtime pay under the FLSA. A copy of the Davis decision may be found here.

If you worked as a loan underwriter at any time during the last three years (or during the last four years if you worked in California), you may be entitled to overtime pay for those weeks in which you worked more than 40 hours per week. Please contact attorney Jim Clapp for a free, no-risk consultation at (858) 623-4200; email: jclapp@sdlaw.com.