This short article first starred in the July 2015 problem of the Minnesota Bankers Association’s month-to-month publication.
The U.S. Supreme Court has determined that the federal Department of Labor’s (DOL’s) March 24, 2010, Administrator’s Interpretation that home mortgage officers typically must certanly be compensated as nonexempt employees underneath the federal Fair work guidelines Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). Which means that, unless an exclusion is applicable, home loan (as well as other) loan officers must, like all nonexempt employees, keep a period record of them all worked, receive at least minimal wage for each and every hour worked, and get paid overtime for many hours worked over 40 in a work week. The 2010 Administrator’s Interpretation withdrew and reversed the DOL’s early in the day 2006 Opinion Letter developing the DOL’s position in those days that home loan (along with other) loan officers typically had been correctly compensated as “administrative exempt” workers, maybe perhaps perhaps not at the mercy of the timekeeping, minimal wage and overtime requirements of nonexempt workers.
After the launch of the 2010 Administrator’s Interpretation, several challenges that are legal. The certainly one of many significance was at the D.C. Circuit (the home loan Bankers Ass’n case that fundamentally went along to the Supreme Court). In July 2013, the D.C. Circuit granted summary judgment to your Mortgage Bankers Association (MBA) and held that the 2010 Administrator’s Interpretation had been invalid considering that the DOL had not followed the note-and-comment procedures associated with the Administrative that is federal Procedure for reversing its 2006 viewpoint. Ler mais