Bank of America is facing an “unpaid overtime” class action lawsuit on behalf of approximately 850 Mortgage Origination Employees including (but not limited to) Retail Sales Managers, Account Executives, LoanLine Sales Manager, Sales Leader, Manager NCS Production, LoanLine Sales Assistant Manager, Renovation Loan Originator, Home Loans Manager, and Mortgage Loan Associates. (1:12-cv-8681)
This is the second employment lawsuit in the last few years against Bank of America. In 2010 a lawsuit was filed on behalf of Mortgage Loan Officers and Home Loan Consultants.
According to the latest lawsuit, Bank of America violated federal wage and hour laws by failing to pay their Mortgage Origination Employees overtime. Bank of America pays Mortgage Origination Employees on a salary, exempt basis and instructs them that they are not entitled to overtime compensation. However, the suit claims that the nature of the origination duties performed by Mortgage Origination Employees precludes any exemptions from the Fair Labor Standards Act (FLSA) overtime requirements.
The Plaintiffs have alleged that the principal job duty of Mortgage Origination Employees is to sell mortgages to individual consumers from Bank of America offices or over the telephone. Mortgage Origination Employees do not regularly sell mortgages at consumers’ homes or places of business.
The failure to pay employees their earned overtime wages violates the FLSA. The Fair Labor Standards Act (FLSA) requires employers to pay non exempt employees at least the federal minimum wage of $7.25 per hour, for all hours worked and overtime pay for hours worked over 40 in a workweek. If the local state minimum wage rate is higher than that higher rate prevails. The California minimum wage is currently $8.00 per hour.
The FLSA provides for recovery of unpaid overtime wages, an equal amount for liquidated damages, attorney’s fees, and litigation costs. Back wages can be sought over a three-year period from the date the employee joins the case.
If your employer has not paid you overtime that is owed to you, please call California Employment Attorney, Todd M. Friedman at 877-449-8898 for a free consultation.