Mortgage Company Paid Nearly $2M to Settle OT Complaint
Allied Home Mortgage Corp. in Houston has paid $1,855,518 in back wages after the U.S. Department of Labor’s Wage and Hour Division accused the company of violating the Fair Labor Standards Act (FLSA) by failing to pay an overtime premium to commission-only employees.
The Department of Labor says that the company cooperated with the investigation by conducting a self-audit and agreed to future compliance. Back wages have been paid to 588 branch managers, loan officers, loan processors, and clerks, who were performing inside sales work at the company.
The FLSA requires employers must maintain accurate time and payroll records. Also, employees must be paid minimum wage for all hours worked and time and one-half their regular rates of pay for hours worked over 40 per week.
Earnings may be determined on a piece-rate, salary, commission or some other basis, but in all such cases the overtime pay due must be computed on the basis of the average hourly rate derived from such earnings. The FLSA provides an exemption from both minimum wage and overtime pay for bona fide executive, administrative, professional, and outside sales employees.
Additional laws apply in California.
If you have questions regarding Employment Law then contact The Law Offices of Amanda Hill located in Beverly Hills at (310) 694-8089 to have an attorney help you with your legal needs.
