Mortgage loan brokers owed minimum wage, DOL claims
The Miami Herald reports:
The U.S. Department of Labor has filed a lawsuit against a mortage broker with local operations, alleging the company owes at least 200 loan officers more than $239,000 in back pay.
Ohio-based Alliance Mortgage Group Inc. and Credit Financial Services did not pay its overtime-eligible loan officers properly, providing only a monthly commission and in some cases wages that were lower than the federal minimum wage, the department's Wage and Hour division said in a statement.
Fifty-one of the 211 employees listed in the complaint are from Alliance Mortgage's South Florida locations in West Palm Beach, Boca Raton and Aventura. Payments owed the local employees ranged from more than $150 to almost $2,150, according to the complaint.
Comment: A copy of the complaint is available here.
Under the Fair Labor Standards Act, an employer must pay an employee at least the minimum wage ($5.15 per hour), even if that employee is working on a commission system. The complaint alleges that many of Alliance's mortgage brokers did not earn enough in commissions to give them at least the minimum wage.
Another point to note about the suit: the Department of Labor sued not only the corporations that employed the brokers, but also the president and chief financial officer of the corporations. As the guys who set the compensation policy of the corporations, they are liable along with the actual employers.