This informative article first starred in the July 2015 dilemma of the Minnesota Bankers Association’s monthly newsletter.
The U.S. Supreme Court has determined that the federal Department of Labor’s (DOL’s) March 24, 2010, Administrator’s Interpretation that home loan officers typically needs to be compensated as nonexempt employees under the federal Fair work Standards Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). Which means that, unless an exclusion is applicable, home loan (along payday loans rhode island with other) loan officers must, like all employees that are nonexempt keep an occasion record of them all worked, receive at least minimal wage for each and every hour worked, and start to become 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 (and other) loan officers typically had been correctly compensated as “administrative exempt” workers, maybe 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, a few legal challenges took place. The certainly one of most 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 the Mortgage Bankers Association (MBA) and held that the 2010 Administrator’s Interpretation ended up being invalid since the DOL hadn’t followed the note-and-comment procedures associated with the federal Administrative Procedure Act for reversing its 2006 viewpoint. Ler mais