Mortgage officers win seven-figure settlement over employee classification
A bank that operates across more than 20 states in the U.S. and a group of employees have reached a settlement over unpaid overtime.
The class-action lawsuit that led to the settlement included 915 loan officers who currently or previously worked at the bank, according to news source Law 360. The suit contended that the bank improperly tracked the officers' time and attendance because they were improperly classified as exempt employees and therefore not eligible for overtime.
The total settlement is roughly $7 million dollars, which will cover unpaid overtime hours, with each member of the class receiving $3,350 after lawyer's fees, court costs and other amounts are deducted. The workers lost out on roughly four hours of overtime for each week worked.
The Fair Labor Standards Act provides exemptions from both the minimum wage and overtime for a variety of occupations, including some sales employees. However, various qualifications apply to those exemptions, which the court ruled were not fulfilled by the employees' duties and knowledge bases.
The use of employee management software lets businesses accurately track the hours worked and pay received by all non-exempt employees. Complete records and properly calculated compensation help companies stay compliant under the FLSA and avoid litigation.
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