This short article first starred in the July 2015 problem of the Minnesota Bankers Association’s month-to-month publication.
The U.S. Supreme Court has determined that the Department that is federal of (DOL’s) March 24, 2010, Administrator’s Interpretation that home loan officers typically needs to be compensated as nonexempt employees underneath the federal Fair work guidelines Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). This means, unless an exclusion is applicable, home loan (along with other) loan officers must, like all employees that are nonexempt keep a period record of them all worked, receive at least minimal wage for each and every hour worked, and get paid overtime for several hours worked over 40 in a work week. The 2010 Administrator’s Interpretation withdrew and reversed the DOL’s earlier in the day 2006 Opinion Letter developing the DOL’s position during those times that home loan (along with other) loan officers typically had been precisely paid as “administrative exempt” workers, perhaps maybe perhaps not susceptible to the timekeeping, minimal wage and overtime requirements of nonexempt workers.
The Supreme Court’s Choice
Following launch of the 2010 Administrator’s Interpretation, a few appropriate challenges happened. The certainly one of many significance was at the D.C. Circuit (the home loan Bankers Ass’n case that ultimately went along to the Supreme Court). In July 2013, the D.C. Circuit granted summary judgment to your Mortgage Bankers Association (MBA) and held that the 2010 Administrator’s Interpretation had been invalid since the DOL hadn’t followed the note-and-comment procedures for the federal Administrative Procedure Act for reversing its 2006 viewpoint.
The situation went along to the Supreme Court on that problem alone (rather than the issue of if the DOL’s Interpretation that home mortgage officers needs to be compensated as nonexempt employees ended up being correct), as well as on March 9, 2015, the Supreme Court unanimously overruled the D.C. more “The Supreme Court Decides The DOL’s Interpretation pay that is regarding Mortgage Loan Officers”