Department Of Labor Issues Opinion Letter Recognizing Mortgage Loan Officers As Exempt Administrative Employees.
Mondaq Business Briefing › Nbr. 2006, January 2006
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Department Of Labor Issues Opinion Letter Recognizing Mortgage Loan Officers As Exempt Administrative Employees.
For the past several years, employers in the mortgage lending industry have faced increasing litigation pressure over the decision to classify loan officers as exempt from the overtime requirements of the Fair Labor Standards Act pursuant to the administrative exemption. On September 8, 2006, the Department of Labor issued Opinion Letter FLSA2006-31, in which it confirmed that mortgage loan officers can satisfy the administrative exemption. While the Department's conclusion is of particular significance for mortgage lenders, the opinion letter will have a significant impact throughout the financial services industry and beyond.
The FLSA And The Administrative Exemption The FLSA requires covered employers to pay certain employees overtime at a rate of one and one-half times the employee's regular rate of pay for hours worked in excess of forty per week.1 This requirement is subject to a number of exceptions. Of particular importance to employers in the mortgage industry, the overtime requirement does...See the full content of this document
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