For years, mortgage companies have used a range of compensation schemes to avoid paying employees the overtime wages they are legally entitled to. Workers with job titles such as “mortgage loan originator,” “loan officer,” “loan originator,” “producing team manager,” “non-producing team manager,” and “loan processor” are often misclassified as exempt from overtime under the Fair Labor Standards Act (FLSA). In many cases, this is unlawful.

If you have worked more than 40 hours per week in one of these roles but were paid only a salary, commission, or combination of the two—and were not paid time and a half for your overtime hours—you may be entitled to substantial back pay, liquidated damages, and attorney’s fees.

Common Violations in the Mortgage Industry

1. Misclassification as Exempt Employees

Mortgage companies frequently misclassify loan officers and originators as exempt under the “administrative exemption.” However, the U.S. Department of Labor (DOL) and several courts have rejected this classification in many cases. To qualify for the administrative exemption, an employee’s primary duty must involve office or non-manual work directly related to management or general business operations, and the employee must exercise discretion and independent judgment on significant matters.

Mortgage loan officers and similar roles often fail to meet this test. The DOL issued a 2010 Administrator’s Interpretation stating that mortgage loan officers do not qualify for the administrative exemption because their primary duty is selling loan products—work that is more akin to inside sales than administrative tasks.

2. Commission-Only or Salary-Plus-Commission Pay Without Overtime

Some companies pay loan officers a base salary and commissions, or commission-only, believing this exempts them from overtime pay obligations. It does not. The FLSA requires that unless an exemption applies, employees must be paid one and one-half times their regular rate of pay for every hour worked over 40 in a workweek—even if they receive commissions.

The “commissioned sales” exemption under Section 7(i) of the FLSA only applies to employees in retail or service establishments, which does not include mortgage companies. Therefore, loan officers and processors paid on commission must be paid overtime unless another exemption applies (which, as discussed, often does not).

3. Off-the-Clock Work

Mortgage industry workers often work well beyond a typical 40-hour workweek, answering emails, scheduling client calls, preparing paperwork, and working on weekends or evenings to meet sales goals. Employers sometimes look the other way or explicitly require this “off-the-clock” work without paying for it. Under the FLSA, all hours worked must be counted, whether the employer specifically authorized them or not.

4. Improper Timekeeping Practices

In some instances, employers don’t require employees to track their time at all, or they automatically deduct lunch breaks even if the employee worked through lunch. Others may use outdated timekeeping software that doesn’t allow for entry of hours worked outside the office. These are red flags that the employer may not be properly compensating employees for all hours worked.

Who Might Have a Claim?

You may have a potential overtime claim if you:

• Worked as a mortgage loan originator, loan officer, processor, or team manager (producing or non-producing)
• Worked more than 40 hours in one or more weeks
• Were paid by salary, commission, or both, and not paid overtime
• Were not asked to track your hours, or were discouraged from reporting all time worked
• Worked from home or after hours without additional pay

Your Legal Rights

Under the FLSA, non-exempt employees are entitled to:

• Time-and-a-half pay for all hours worked over 40 in a week
• Liquidated damages equal to the amount of unpaid wages (i.e., double damages)
• Attorneys’ fees and costs paid by the employer if the claim is successful

Importantly, you do not have to fear retaliation. The FLSA prohibits employers from firing, demoting, or harassing employees for asserting their rights under the law. If your employer retaliates, you may be entitled to additional damages.

Why Act Now?

There is a strict statute of limitations on unpaid overtime claims. Workers can recover back pay for up to two years prior to filing suit—or three years if the violation is found to be willful. Every week that passes may reduce the amount of wages you can recover.

Class and collective actions are also time-sensitive. If other employees have filed suit, joining early helps preserve your rights and gives the court a clearer picture of the company’s wage practices.

What About Team Managers?

Even those with a “manager” title may be eligible for overtime. The FLSA’s executive exemption, which applies to true managers, only fits if:

1. The employee’s primary duty is management,
2. The employee regularly directs the work of at least two full-time employees, and
3. The employee has hiring/firing authority or significant input.

In many mortgage companies, “producing” managers primarily originate loans themselves and manage few or no direct reports. These workers are often misclassified and unlawfully denied overtime pay.

What To Do If You Suspect a Violation

If you believe your rights have been violated, it’s important to speak with an experienced wage and hour attorney. Gathering documentation—such as pay stubs, emails, schedules, and notes of hours worked—can help support your claim. But even if you don’t have detailed records, you may still have a valid case.

I’m attorney Josh Borsellino, and I have successfully represented hundreds of workers in wage and hour lawsuits. I understand the tricks employers use to avoid paying workers fairly—and I know how to fight back.

Contact Us for a Free Consultation

If you have worked as a mortgage loan officer, originator, processor, or manager and were not paid overtime, I invite you to contact me today for a free and confidential case evaluation. There are no upfront costs, and you only pay if we recover money for you.

📞 Call: 817.908.9861
📧 Email: josh@dfwcounsel.com
🌐 Visit: www.oilfieldovertime.com or www.dfwcounsel.com

Don’t let unpaid wages go unchallenged. Assert your rights, and let’s get you the compensation you’ve earned.