This informative article first starred in the July 2015 problem of the Minnesota Bankers Association’s monthly newsletter.
The U.S. Supreme Court has determined that the Department that is federal of (DOL’s) March 24, 2010, Administrator’s Interpretation that home mortgage officers typically must certanly be paid as nonexempt employees under the federal Fair work guidelines Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). Which means that, unless an exclusion applies, home loan (along with other) loan officers must, like all nonexempt employees, keep an occasion record of them all worked, receive at least minimal wage for each and every hour worked, and start to become paid overtime for many hours worked over 40 in a work week. The 2010 Administrator’s Interpretation withdrew and reversed the DOL’s earlier 2006 Opinion Letter developing the DOL’s position during those times that home loan (along with other) loan officers typically had been precisely compensated 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 fundamentally went along to the Supreme Court). In July 2013, the D.C. Circuit granted summary judgment into the Mortgage Bankers Association (MBA) and held that the 2010 Administrator’s Interpretation ended up being invalid as the DOL hadn’t followed the note-and-comment procedures associated with the federal Administrative Procedure Act for reversing its 2006 opinion.
The truth went along to the Supreme Court on that problem alone (and never the problem of perhaps the DOL’s Interpretation that home mortgage officers needs to be compensated as nonexempt employees ended up being proper), as well as on March 9, 2015, the Supreme Court unanimously overruled the D.C.