A federal judge recently ruled that an unpaid overtime lawsuit against Barrett Financial Group, a large Arizona-based mortgage lender, must proceed in private arbitration rather than open court. This case highlights a growing issue in the mortgage industry: employers using arbitration agreements to avoid public accountability for wage violations.

The plaintiff worked for Barrett as a loan officer, alleging that she was misclassified as exempt from the Fair Labor Standards Act (FLSA) and not paid overtime wages, despite regularly working more than 40 hours per week.

Barrett Financial sought to dismiss the court case and move the dispute to arbitration based on an electronic agreement signed during onboarding. The court found the arbitration agreement valid and enforceable.

The Mortgage Industry Is Rife with Overtime Violations

Unfortunately, this situation is not unique. Across the country, mortgage lenders routinely misclassify loan officers, processors, underwriters, and sales staff as exempt from overtime. These employees are expected to work long hours—often nights and weekends—without receiving proper compensation for their time.

In many cases, workers are:

• Paid commission-only, a flat salary, or a draw

• Required to complete extensive administrative work

• Discouraged from recording overtime

• Given titles that sound exempt, but duties that are not

And increasingly, these companies are requiring employees to sign arbitration agreements to limit their exposure to lawsuits.

What If You Signed an Arbitration Agreement?

Even if you may have signed an arbitration agreement, you are still entitled to pursue claims for:

• Unpaid overtime wages under the FLSA

• Liquidated damages (often doubling your unpaid wages)

• Reimbursement of attorneys’ fees and costs

Arbitration changes how your claim is heard—not whether you have one. You still have the right to bring an individual arbitration claim and recover the wages you earned.

Who Is Affected?

If you worked in the mortgage or financial lending industry, you may have a claim if:

• You were paid a salary or commission-only; and

• You worked more than 40 hours per week

Positions at risk include:

• Mortgage Loan Officers

• Loan Processors

• Disclosure Specialists

• Underwriters

• Sales Support and Team Leads

Contact an Experienced Overtime Attorney

I represent loan officers, processors, and other mortgage industry professionals nationwide who have been denied proper overtime pay. If you worked long hours and weren’t properly paid, I can help you understand your rights and options—even if you signed an arbitration agreement.

Contact me today at 817.908.9861 or josh@dfwcounsel.com for a free and confidential consultation.

You may be owed unpaid wages—and you don’t have to fight alone.