Employers sometimes classify their workers as “exempt” employees to avoid paying them overtime.
An example of a situation where it has been alleged that the employer engaged in unfair employment practices and misclassified employees in order to avoid paying overtime involves employer Real Estate Mortgage Network.
Real Estate Mortgage Nertwork, which is in the business of selling mortgages, is alleged to have improperly misclassified underwriters and closers as administrative employees who are “exempt” salaried employees, and thus not eligible to receive overtime pay.
Federal regulations specify that a worker is employed in an administrative capacity if he or she performs work “directly related to management policies or general business operations” and customarily and regularly exercises discretion and independent judgment.”
Underwriters and closers of Real Estate Mortgage Network did not have any ability to “exercise discretion and independent judgment”. Underwriters were given a loan application and were required to follow a detailed list of criteria. If the loan application conformed to the criteria, the loan was approved. Closers were then given the file to handle the standard closing procedures set by the employer, including preparing the paperwork and arranging for the disbursement of funds.
Underwriters and closers of Real Estate Mortgage Network did not exercise any independent judgment regarding the approval or disapproval of the loan and therefore should have been paid overtime.
Abbey Spanier, LLP , located in New York City, is a well recognized national class action and complex litigation law firm has filed a class and collective action on behalf of persons who worked as underwriters and/or closers entitled: Thomson v. Real Estate Mortgage Network, Inc., Real Estate Mortgage Network Holding, LLC, Security Atlantic Mortgage Company, Case No. 2:11-cv-01494, DNJ
Are you an underwriter or a closer who has been classified as exempt and denied overtime? Please tell me your story.