Department Of Labor Rules Mortgage Workers Are Subject To Overtime Pay
WASHINGTON – The American Bankers Association and several banking groups filed papers yesterday challenging a recent ruling by the Department of Labor that says banks, credit unions and other lenders must apply overtime pay and regulations to most employees who originate residential mortgages.
An amicus brief filed by the banking groups argues that the overtime ruling represents a major shift in previous policy that will cost lenders millions of dollars in overtime pay.
“For years, the banking industry has relied on the Department of Labor’s position that mortgage loan officers fall within the administrative employee exceptions to the Fair Labor Standards Act’s overtime requirements,” said Robert Davis, chief ABA mortgage lobbyist. “The banking and mortgage industry has structured its employment and compensation practices with respect to thousands of employees on this previously-settled legal expectation.”
The banking groups filed amicus briefs for a suit, known as Henry vs. Quicken Loans, challenging the Labor Department’s ruling.