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Department of Labor Reverses Course on Mortgage Loan Officers

Posted by Marc Smith | Apr 21, 2010 | 0 Comments

On March 24, 2010, the Department of Labor abruptly reversed its position on the exempt status of mortgage loan officers for purposes of eligibility for overtime compensation.   Less than four years ago, the Department of Labor issued an Opinion Letter in which it determined that mortgage loan officers were exempt “administrative” employees and thus ineligible for overtime.  In its new ruling, the Department of Labor concludes that mortgage loan officers are primarily responsible for the sale of mortgage loans, and therefore they are “production” workers and do not qualify for the administrative exemption.

The Department of Labor's newly revised position with respect to the exempt status of mortgage loan officers is a very significant development for employers who must now face the task of reclassifying their mortgage loan officers as non-exempt employees and come up with an appropriate strategy of how to deal with any overtime its loan officers may have logged in the past two to three years.  Employers also face the prospect of collective actions or individual claims from mortgage loan officers who worked, but did not receive overtime pay during the past three years.

About the Author

Marc Smith

Marc J. Smith is a Rockville, Maryland employment attorney and a founding member of the law firm formerly known as Smith, Lease & Goldstein, LLC. In 2018, after 18 years managing Smith, Lease & Goldstein, LLC's employment counseling and litigation practice, Marc launched his own boutique practice...

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Representation Of Employers And Employees

The Law Office of Marc J. Smith, LLC is a boutique employment law practice based in downtown Rockville, Maryland near the Montgomery County Circuit and District Courts. The Firm’s practice focuses exclusively in the employment law arena and provides counseling, litigation and a wide range of other employment-related services to employers and employees throughout the State of Maryland, Washington D.C. and other jurisdictions. The Firm also represents individuals who have failed to register with the Selective Service System and who are trying to apply for or maintain federal employment.

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