Friday, April 16, 2010
Mortgage Loan Officers May Be Eligible for Overtime Pay
The DOL has issued an legal opinion that banks should not classify their loan officers "administrative employees" under the FLSA. Therefore, the loan officers may be eligible for overtime pay. Essentially, the DOL has concluded that these mortgage loan officers are inside sales employees who "produce" loans. As such, they are not exempt from overtime laws requiring overtime pay for work that exceeds 40 hours in a workweek. The latest statement from DOL reverses the positions it adopted in opinion letters issued in 2001 and 2006. The complete text of the Administrator's opinion letter is here.