Due to the economic downturn many companies and businesses have been turning to loans, specifically those signed into law under the Coronavirus Aid, Relief and Economic Securities (CARES), to weather the likely recession caused by the COVID-19 Pandemic. The headliner of the CARES Act loans was the Paycheck Protection Program (PPP) loan. Millions of affected businesses rushed to their banks to apply for these PPP loans and continue to do so in large numbers.
Banks normally process these loans on location during operating hours, however, due to stay at home orders, many of their employees are working remotely from home. The high demand for theses PPP loans have caused remote bank employees such as loan officers and other job titles that do not usually complete this function, work around the clock to finalize these loans. These long work hours completed as a result of processing these PPP loans have caused many bank employees to go unpaid for all their hours, including significant overtime pay in the last few months.
In an attempt to skirt wage and hour laws, many financial institutions have changed employee job functions, while they work from home, so if they end up working over 40 hours per week as a salaried employee, they can avoid paying overtime at time and a half their regular hourly rate. This, however, is an illegal tactic. If employees are completing what can be considered non-exempt work for the majority of their day’s work, such as processing loans, they are entitled to overtime pay under state and federal laws. Many bank employees that find themselves currently working from home may be entitled to overtime pay and not even realize it.
If you are currently working remotely for a bank and have either had your job title changed recently, or are required to process PPP Loans, or are working much longer hours than usual, you may have a claim for owed wages and unpaid overtime. Fitapelli & Schaffer, LLP offers a free and confidential consultation and is available to discuss your recent experience in the industry at (212) 300-0375. Feel free to call or visit our site here for additional information to discover if you may have a claim.