MILWAUKEE — An arbitrator hearing an unpaid overtime class action claim recently ordered a Milwaukee mortgage company to pay millions of dollars in back pay to hundreds of current and former loan officers who claim they were pressured to work several hours each week off the clock. According to reports, the loan officers were in the midst of the housing crisis several years ago and did not want to risk their livelihoods by demanding their company pay overtime and business expenses.
The case began in 2011 when a single claimant filed a class action overtime lawsuit against Waterstone Mortgage Corporation in federal District court but was refereed to an arbitrator per the terms of the employee’s work contract. Arbitration is an extra-judicial process where a neutral third party takes up a claim, hears arguments from both sides, and eventually issues a ruling. Requiring employees to sign such arbitration agreements is a common business practice as employers believe it can help limit the company’s liability in case of a class action lawsuit.
Approximately 175 current and former loan officers from 17 states will share part of the $7 million arbitration ruling as compensation for unpaid overtime, interest on back wages, unpaid business expenses, and other damages. Furthermore, Waterstone Mortgage will also be responsible for covering the costs of the plaintiffs attorneys fees necessary to prosecute the matter.
Mortgage Company Claims Loan Officers were Outside Salespersons
Waterstone Mortgage attempted to argue that the loan officers were never due overtime wages and reimbursement for business expenses because these individuals were “outside salespersons” and therefore exempt under the Fair Labor Standards Act (FLSA). While the FLSA does allow limited overtime pay exemptions for certain classes of workers, these employees must perform certain duties.
Specifically, outside salespersons must make their calls off company property, usually on the road or door to door. However, in this case it appears quite clear these loan officers worked from company property and therefore should have been treated like any other overtime eligible worker.
Loan Officer Unpaid Overtime Lawsuit
Call (855) 754-2795 or complete the Free Unpaid Overtime Case Review form on the top right of this page if you believe that your wage rights are being violated under the FLSA. Our top-rated team of unpaid wage lawyers will evaluate your situation to determine your best course of action to help you seek justice.
Our office will also determine if it is in your best interest to file a lawsuit against your employer. Because strict time limitations apply for filing these types of claims, we advise you contact our experienced unpaid overtime wage attorneys at your earliest convenience and preserve your legal rights.