Mitch Kider, Weiner Brodsky Sidman Kider PC, was back by popular demand. Last week’s topic of paying overtime to loan originators created many questions which Mitch this week tried to answer. The majority of the questions had to do with (a) what options are available to consider loan originators exempt from overtime; and (b) if they, in fact, cannot be considered exempt, when do they need to begin paying OT and how do they do it.
No one liked the answers given. The recent reversal of opinion by the Department of Labor says that loan originator duties no longer qualify originators as exempt under the administrative exemption. The outside sales exemption will not apply to most originators as they, too often, work from their office or home office. Mitch made the case for originators to be considered exempt under the professional exemption. This will become more and more applicable as the recently implemented loan officer licensing and certification laws kick in. Someone in the industry will need to work with the Department of Labor to determine if loan originators then should be exempt under the professional exemption. If the DOL agrees, we may have the answer we want, loan originators will be exempt. But the answer will likely take months, if not years to receive.
In the meantime, what do you do? According to Mitch, each lending company should begin now to establish policies and documentation to support tracking originator hours and should begin paying OT.
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