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Wells Fargo Settles Overtime Class Action for Mortgage Consultants

The federal Fair Labor Standards Act (FLSA) defines overtime as any time spent working after eight hours a day or forty hours a week. The Act requires all employers to pay their hourly workers one and one-half times their normal hourly rate for all overtime worked. There are some exceptions, but the FLSA is very specific about the types of employees that can qualify for the overtime exemption.

The FLSA provides three categories of employees that can qualify for the overtime exemption: administrative, executive, and professional. Rather than letting employers simply put their workers in a convenient category, the FLSA defines the responsibilities each type of employee must have in order to qualify for the overtime exemption.

Administrative employees must spend the majority of their time performing primarily office work and providing administrative assistance directly to an executive. An executive is defined as anyone who spends more than 50% of their time at work managing other employees. Employees under the executive category must have the ability to discipline their employees and have significant say in the hiring and firing of their employees. The professional category covers all workers who require a particular set of skills or level of education to perform their job. Performers, doctors, and lawyers are some examples of workers that typically qualify under the professional category.

According to a recent wage and hour class action lawsuit, Wells Fargo allegedly misclassified its mortgage consultants as exempt from overtime.

Dylan H. who filed the wage and hour class action lawsuit in August 2011 on behalf of himself and other current and former loan officers, allege they were regularly made to work overtime. Because they were classified as exempt from overtime, Wells Fargo did not pay them straight time, much less the proper overtime compensation, for all the time they spent working after forty hours per week.

Dylan alleges they were made to work so much overtime that the total hours they worked, divided by their salaries, meant they earned less than minimum wage. The class action lawsuit is therefore filing for violations of the Illinois Minimum Wage Law and the Illinois Wage Payment and Collection Act, as well as the FLSA.

Wells Fargo continues to deny having done anything illegal, but it has agreed to settle the lawsuit in order to avoid the hassle and expense of pursuing the dispute in court.

The amount of the settlement has not yet been defined. It will depend on the number of class members who file a claim and how much they file a claim for.

The class includes all employees of Wells Fargo who worked as home mortgage consultants, mortgage consultants, or private mortgage bankers in the state of Illinois between August 29, 2008 and March 26, 2011. Class members can choose to opt out of the settlement if they would like to reserve the right to file another lawsuit against Wells Fargo. Those who do not opt out and do not submit a claim form will automatically receive a minimum payment of $100. Any additional payment will be calculated based on the amount of time the employee worked and the amount they earned during the defined Class Period.The attorneys at Chicago Overtime Law Center have decades of experience litigating wage and hour cases, including overtime, vacation pay, meal breaks, and tips against Banks, Mortgage Brokerage, Real-Estate Brokerages, financial services companies and private security firms. We have offices conveniently located in Oak Brook and Chicago, Illinois near Wheaton, Aurora and Naperville. Contact the Berwyn and Oak Park overtime lawyers and attorneys at the Chicago Overtime Law Center today at 312-869-4095. We are looking to represent financial advisor associates, appraisers, loan and mortgage brokers who have not been paid overtime and have been mis-classified as managers.