COURT FINDS THAT LOAN UNDERWRITERS ARE ENTITLED TO OVERTIME PAY
These types of cases turn on an analysis of a worker’s actual job duties and responsibilities. In the J.P. Morgan case, the plaintiffs were underwriters whose duties involved approving loans in accordance with guidelines provided by the bank. The court stated, “Underwriters were given a loan application and followed procedures specified in the Credit Guide in order to produce a yes or no decision”…”Their work is not related either to setting ‘management policies’ nor to ‘general business operations’ …, but rather concerns the ‘production’ of loans — the fundamental service provided by the bank.” So, the court concluded, the nature of the underwriters’ work was production rather than administrative.
A similar class action lawsuit has also been filed alleging that MetLife Bank Home Loan underwriters have been misclassified as exempt and thus not paid for all overtime hours worked in violation of federal overtime pay laws. While MetLife Home Loans recently reclassified its underwriters as non-exempt and started paying them overtime, the company did not pay them for the overtime hours they worked prior to being reclassified. Understandably, the employees seek to recover their unpaid overtime wages that they are entitled to and that should have been paid to them in the past when the overtime hours were actually worked.If you are a current or former loan underwriter and believe that you may have a claim or would like to get more information, please call us at 1-866-559-0400, email us at [email protected] submit your information using our convenient Case Evaluation form for a FREE and CONFIDENTIAL review of your circumstances.