Mortgage company sued for employee misclassification

An Ohio-based mortgage company is being sued for time and attendance violations regarding unpaid overtime by two former employees who worked as underwriters for the company, according to a press release from Nichols Kaster Attorneys at Law. The suit alleges that in an attempt to circumvent paying time-and-a-half to those working as underwriters, the firm re-classified them all under an employment status that made them ineligible for overtime pay under the Fair Labor Standards Act.

Under the current FLSA guidelines, as long as workers are not performing duties under job titles or functions that exempt them, they must be paid overtime for any hours over 40 worked in a given week and the amount can be no less than one-and-a-half times their rate of pay. However, for those occupational titles classified as exempt under the FLSA, employers are not required to pay those employees overtime. These jobs include administrative, outside sales and executive functions, as well as any other salaried position.

According to the website of the law firm representing the plaintiffs, they are suing for back pay, other damages as well as payment of attorney's fees and other legal costs. In addition to the two former employees who initially filed the lawsuit, the outcome could affect other individuals working as underwriters for the mortgage company as well.

Unique views: 4,621

Total views: 4,621

Related Headlines