Whether mortgage loan officers are entitled to overtime pay depends on various factors the most important of which is their specific job duties.
Over the years, there have been many disputes and court cases regarding the classification of mortgage loan officers under the FLSA. However, most all mortgage loan officers are entitled to minimum wage and overtime compensation.
What Does the Law Say?
In March 2010, the Department of Labor issued interpretative guidance that mortgage loan officers are non-exempt hourly employees. In 2015, the United States Supreme Court ruled that mortgage loan officers are entitled to overtime pay under the FLSA, with some exceptions.
- Exempt Employees: Exempt employees are typically salaried workers who meet certain criteria, such as working in executive, administrative, or professional roles. Exempt employees are not entitled to overtime pay.
- Non-Exempt Employees: Non-exempt employees are usually hourly workers or salaried workers who don’t meet the exemption criteria. These workers are entitled to overtime pay for hours worked over 40 per week.
Mortgage Loan Officers, Overtime Pay and the FLSA
The U.S. Department of Labor (“DOL”) has issued various opinions and guidelines on this topic over the years, leading to some confusion. However, the current general stance is that mortgage loan officers are often non-exempt and therefore, entitled to overtime pay, particularly if they do not perform significant administrative or managerial tasks.
Here’s what influences their classification:
- Job Duties: Mortgage loan officers who primarily sell loans and assist customers in applying for loans (and do not perform substantial managerial or administrative duties) are generally considered non-exempt. This means they are eligible for overtime pay.
- Salary and Compensation: If a mortgage loan officer is primarily compensated through commissions but does not meet the duties of an administrative or managerial role, they are still likely non-exempt, entitling them to overtime pay.
- Off The Clock Work: Mortgage companies frequently refuse to pay Loan Officers for work the perform outside of the office. This unpaid work includes calls, texts, and emails with clients and management, necessary loan paperwork, and mortgage related computer work. Mortgage companies must pay loan officers for this work time whether or not they perform this work inside or outside of the office. A mortgage company violates the law if the company requires Loan Officers to record 8 hours of work time day after day. We see this frequently.
- Outside Sales: My mortgage employers illegally classify mortgage loan officers as exempt by using the outside sales exemption. This is almost always illegal. Loan Officers only qualify for this exemption if they make sales at the client’s home or place of business. This is simply not how the business works anymore with the current technology. The law considers a loan officer’s home office to be the employer’s office. Work loan officers perform in a home office is irrelevant to the outside sales exemption. We have represented tens of thousands of loan officer whom companies illegally classified as exempt outside sales employees.
- Independent Contractor: The other way mortgage companies violate the wage laws is to classify Loan Officers as independent contractors. This violates federal lending laws so it is illegal. You should contact us if you are working as a loan officer who the company is classifying as an independent contractor.
What to Do if You Believe You’re Owed Overtime Pay
If you’re a mortgage loan officer and believe you’ve been improperly classified as exempt or haven’t been paid overtime when you should have been, you may be entitled to recover unpaid wages.
- Review Your Job Duties: Evaluate whether your duties focus on loan sales and customer service rather than significant administrative or executive tasks.
- Track Your Hours: If you work more than 40 hours per week and have not received overtime pay, document the hours worked.
- Consult with Your Employer: You can raise the issue with your HR department to clarify how you’re classified and whether your overtime pay has been calculated correctly.
- Seek Legal Assistance: If you believe your rights under the FLSA have been violated, consulting with an employment attorney, like Rowdy Meeks Legal Group LLC, can help you determine if you are eligible to file a lawsuit for unpaid overtime wages.
Have You Been Denied Overtime Pay?
In general, mortgage loan officers who primarily engage in sales and customer interaction are non-exempt and entitled to overtime pay under the FLSA.
If you’re unsure whether you qualify for overtime or suspect you’ve been misclassified, you should contact Rowdy Meeks Legal Group LLC today.