The DOL Says Loan Officers are Entitled to Overtime Pay
In a major set back to banks and finance companies, the U.S. Department of Labor recently held that mortgage and loan officers are entitled to overtime pay. This reverses a long standing policy that mortgage loan officers were exempt from overtime pay under the administrative employee exemption of the Fair Labor Standards Act. But on March 24, 2010, the U.S. Department of Labor reversed course and held that loan officers are not exempt from overtime pay.
This is great news for loan officers around the country. For years, loan officers had a tougher time bringing overtime pay cases because they were often considered exempt from the overtime pay rules. But courts lately have been finding that employees who are deemed "production" workers no longer qualify for the administrative exemption.
The Department of Labor found that loan officers in reality are mere production workers who help sell loans. The Department found that loan officers do not manage the business or otherwise qualify for the administrative exemption.
