Do Employees who Perform the Typical Job Duties
of a Mortgage Loan Officer Qualify for Overtime?
(Application of the Administrative Exemption under Section 13(a)(1) of the Fair Labor Standards Act, 29 U.S.C. § 213(a)(1))
On March 24, 2012, Deputy Administration Nancy J. Leppink of the U.S. Department of Labor issued guidance stating that employees who perform the typical job duties of a mortgage loan officer do not qualify as bona fide administrative employees exempt under section 13(a)(1) of the Fair Labor Standards Act, 29 U.S.C. § 213(a)(1).
In plain English, this guidance means that many loan officers and underwriters in the mortgage industry are not overtime exempt; in fact they may never have been overtime exempt at all. In an industry that works as many hours as the post-2008 mortgage brokers do, the number of overtime hours that many employers may be forced to pay out could be startling.
We suggest that any loan officer, underwriter or mortgage industry employee who does not currently receive overtime should immediately contact an experienced employment attorney to discuss the viability of their overtime claim. There is a high likelihood that you have options for redress that can be pursued without putting your employment prospects at serious risk.