In Mortgage Bankers Association v. Solis et al., Case No. 1:11-cv-00073 (D.D.C. June 6, 2012), U.S. District Court held that the Department of Labor (“DOL”) lawfully acted within its discretion when, in 2010, it stated that mortgage loan officers are not generally exempt from overtime pay. The 2010 interpretation concluded that because loan officers' primary duties focus on sales, they do not perform the administrative work necessary for the exemption.
This decision clarifies any open question as to whether mortgage loan officers may be categorized as falling under the administrative exemption to the Fair Labor Standards Act (“FLSA”). Typical loan officers, whose primary duties involve sales, cannot be categorized as exempt, unless they meet the test for the outside salesman or other exemption.
Courts continue to differ on this issue, and other exemptions may apply to loan officers depending upon facts at issue and jurisdiction. The Maryland federal court is also presently confronted with a case involving a claim by loan officers for overtime pay in a collective action. See Myles v. Prosperity Mortgage Company, Civil No. CCB-11-1234 (D. Maryland 2012).
Lebau & Neuworth will report on developments as they occur.
