Loan Officers Should Get Overtime Pay - Says U.S. Dept. of Labor

  

  

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On March 24, 2010,  the U.S. Department of Labor issued a ruling finding in favor of loan officers around the nation.  Now, most all loan officers are clearly entitled to overtime pay.   This question had been hotly disputed for years.  In fact, the U.S. Department of Labor had previously said that loan were not entitled to overtime pay and courts around the nation had come to inconsistent rulings.

In the past, federal courts and the U.S. Department of Labor held that most loan officers were exempt from the overtime pay laws because they were "administrators."  Administrators are exempt from overtime under the Fair Labor Standards Act. 

The new opinion letter from the Department of Labor, however, reversed course and concluded that loan officers are production employees.  Production employees are those who work on producing the product or service provided by the employer. In this case, loan officers help produce the companies product - loans.   Since loan officers are production oriented, they are not considered administrative employees and therefore they are entitled to overtime pay. 

It is now clear that standard loan officers are entitled to overtime pay.  This long running dispute has been resolved in favor of the loan officers.