This short article first starred in the July 2015 dilemma 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 real estate loan officers typically needs to 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 minimum wage for virtually any 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 (as well as other) loan officers typically had been precisely compensated as “administrative exempt” workers, 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 in the D.C. Circuit (the Mortgage Bankers Ass’n case that fundamentally went along to the Supreme Court).