Loan Officers Pending $5M Deal in Wage Suit

Loan officers from an Illinois Bank, the American Bank and Trust, are looking to obtain final approval of a $5 million settlement to resolve wage claims.  The mortgage division loan officers had alleged that the bank knowingly and willfully did not pay their wages in accordance with federal and state labor laws.

Specifically, the loan officers claimed the bank failed to pay them minimum wages for all hours worked and overtime pay for hours worked in excess of forty hours per week. The lawsuit noted that even though these mortgage loan officers were not considered exempt from overtime, the bank did not keep accurate records of their hours worked and failed to compensate them accordingly. Additionally, the lawsuit alleged that a scheme was implemented by the bank
and its executives where they skimmed parts of the loan officers’ commissions.

There are 93 affected loan officers that stand to benefit from this $5 million settlement. Each member is expected to receive a payout of almost $30,000 on average which equates to about 80% of their owed damages. The settlement offer was submitted to an Illinois federal judge this past Thursday for final approval in hopes of resolving this 8-year dispute.

Whether you are considered exempt from overtime pay or not it is beneficial to verify if you are being paid for all of your hours worked. Sometimes employees are told they are not entitled to receive certain benefits when in fact they are, and other times companies fail to properly keep track of hours worked and underpay them. Speak to an employment lawyer now and find out if you have any wage claims. Fitapelli & Schaffer, LLP offers a free and confidential phone consultation when you call (212) 300-0375. You can also view additional information on labor laws here.