Wells Fargo loan officers have just been handed a significant win and will be allowed to move forward with notifying employees nationwide of their right to seek unpaid wages under the Fair Labor Standards Act (“FLSA”). A Pennsylvania federal judge agreed to conditionally certify this group of mortgage consultants that alleged the established banking and lending giant failed to accurately record and pay for all their hours worked when working over 40 hours per work week. Affected employees may include include all current and former mortgage officers that worked overtime for Wells Fargo between May 2016 and the present.
These mortgage loan officers were classified as non-exempt from overtime, getting paid a draw against commission, while consistently working over 40 hours per work week without the proper compensation for overtime pay. The lawsuit, which was originally filed two years ago, alleged the following wage violations under the FLSA:
• Wells Fargo had policies and procedures in place that resulted in its loan officers workingoff the clock and not recording all overtime hours worked
• Paychecks were docked if commissions earned during their first four weeks of employment were less than what they earn in hourly pay
• Commissions/bonuses were not properly taken into account when calculating overtime pay
• Certain overhead expenses, such as costs associated with mailings and advertising, were withheld from their pay
Working off the clock and not properly being paid overtime is all too common in the financial services industry. If you’ve worked for Wells Fargo as a loan officer or in this industry in a similar position and have questions about your pay structure, do not hesitate to call our firm, Fitapelli & Schaffer, LLP, for a free and confidential phone consultation. We can be reached at (212)300-0375 or via our website for additional information regarding your rights.
You can also view the judge’s decision here.