U.S. DOL Declares War on Mortgage Loan Originators: Is Your Bank Ready?

May 12, 2010

On May 12, 2010, Jeffrey Risch, in conjunction with the Illinois Bankers Association presented a webinar entitled "U.S. DOL Declares War on Mortgage Loan Originators: Is Your Bank Ready?" On March 24, 2010, in an unprecedented move, the United States Department of Labor (“DOL”) issued a general opinion declaring that employees who perform the typical job duties of a Mortgage Loan Originator do not qualify as bona fide administrative employees exempt from overtime under section 13(a)(1) of the Fair Labor Standards Act.  If this March 24, 2010 opinion letter wasn’t enough to shake one’s core, the U.S. Secretary of Labor, Hilda L. Solis, issued the following announcement on April 1, 2010:

I have added more than 250 new field investigators nationwide — an increase of a third — to help in this effort. If you are a worker in America, on this day, we promise you a new beginning and a new partnership to ensure you receive the wages you deserve.

Hilda L. Solis – Secretary, U.S. DOL

April 1, 2010

Banks throughout Illinois find themselves scrambling for accurate answers and clear direction on what they should do now in light of the apparent all too real crackdown in wage/hour enforcement. This program offered a detailed summary and lively discussion on the latest wage and hour developments specific to the banking industry and included timely material and updates on the following topics: