U.S. labor department issues notices to mortgage brokerage firmsMortgagePress.comWage and Hour Division, U.S. Labor Department, Fair Labor Standards Act, FLSA
Field offices of the Wage
and Hour Division of the U.S. Labor Department are issuing
notices around the country to mortgage brokerage firms indicating
the necessity to comply with wage and hour requirements. The
notices indicate that investigations reveal significant violations
of wage and hour laws. Common violations include: failure to
guarantee minimum wage to loan officers for all hours in each pay
period, and failure to pay overtime premiums to loan officers and
loan processors even if they are paid on commission. The following
is an example of the notice sent:
Attention mortgage brokerage firms
The Wage and Hour Division of the U.S. Department of Labor has
conducted numerous investigations of mortgage brokerage firms
throughout western Pennsylvania and West Virginia. The majority of
investigations of companies within your industry have yielded
significant violations of federal Wage and Hour laws. These
violations often result in substantial back wages owed to current
and former employees. In conjunction with our partnering efforts
with the Department of Labor, we are undertaking this mailing to
inform you of this situation and to offer you assistance in your
efforts to comply with these requirements.
The Wage and Hour Division administers the Fair Labor Standards Act
(FLSA), as well as several other labor statutes. The FLSA
requires that non-exempt workers be paid at least the federal
minimum wage (currently $5.15/hour) and applicable overtime pay,
typically at time and one-half each workers regular rate of pay for
hours worked in excess of 40 in a workweek. The FLSA also contains
certain record-keeping requirements pertaining to hours worked by
each employee and the length of time these records must be
preserved.
Common violations in your industry include:
*Failure to guarantee minimum wage to loan officers for all hours
worked each pay period, regardless of the level of earnings in
prior or subsequent periods. Loan officers are entitled to receive
minimum wage each pay period even if they are employed on a
commission basis, and regardless of any agreement between the
parties.
*Failure to pay overtime premiums to non-exempt employees who
exceed 40 hours in a work week. Loan officers and loan processors
are entitled to overtime pay even if they are employed on a
commission or salaried basis.
*Failure to accurately record all hours actually worked by
employees.
For additional information on federal Wage and Hour laws,
contact the U.S. Department of Labors Wage and Hour Division using
the information or Web site shown below. Calls to their office may
be placed anonymously and will be answered by trained staff.
U.S. Department of LaborWage and Hour Division:
1000 Liberty Avenue, Room 313
Pittsburgh, PA 15222
Phone: (412) 395-4996
500 Quarrier Street, Suite 120
Charleston, WV 25301
Phone: (304) 347-5206
Web site: www.dol.gov/esa.whd.
