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 must certanly be compensated as nonexempt employees underneath the federal Fair work guidelines Act (FLSA) is enforceable. (Perez v. Mortgage Bankers Ass’n). Which means, unless an exclusion is applicable, home loan (along with other) loan officers must, like all employees that are nonexempt keep an occasion record of them all worked, receive at least minimal wage for virtually any hour worked, and get paid overtime for many 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 compensated as “administrative exempt” workers, perhaps 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 to your Mortgage Bankers Association (MBA) and held that the 2010 Administrator’s Interpretation had been invalid as the DOL hadn’t followed the note-and-comment procedures associated with Administrative that is federal Procedure for reversing its 2006 viewpoint.
The scenario visited the Supreme Court on that problem alone (and never the matter 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. Lire la suite