This informative article first starred in the July 2015 problem of the Minnesota Bankers Association’s month-to-month 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 mortgage officers typically must certanly be paid as nonexempt employees underneath the federal Fair work guidelines Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). This means, unless an exclusion is applicable, home loan (along with other) loan officers must, like all nonexempt employees, keep an occasion record of them all worked, receive at least minimal wage for almost any 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 earlier in the day 2006 Opinion Letter developing the DOL’s position during those times that home loan (as well as other) loan officers typically were precisely compensated as “administrative exempt” workers, perhaps perhaps maybe not susceptible to the timekeeping, minimal wage and overtime requirements of nonexempt workers.
The Supreme Court’s Choice
Following launch of the 2010 Administrator’s Interpretation, a few challenges that are legal. The certainly one of many significance was at the D.C. Circuit (the home loan Bankers Ass’n case that sooner or later went 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 online payday loans direct lenders south dakota Administrator’s Interpretation ended up being invalid as the DOL hadn’t followed the note-and-comment procedures regarding the Administrative that is federal Procedure for reversing its 2006 viewpoint. Continue reading “The Supreme Court Decides The DOL’s Interpretation Regarding Pay for Mortgage Loan Officers”