CINCINNATI – A group of loan officers last week filed a class action suit claiming Emery FCU erroneously classified them as exempt employees to avoid paying them overtime.

The purported class action, headed by Linda O’Neal, claims the credit union is in violation of the Fair Labor Standards Act by misclassifying dozens of loan officers, whose primary duty was selling mortgages and refinancing home loans. Those employees are paid on commission and not on an hourly basis and routinely work more than 40 hours, according to the suit.

The suit asserts that the U.S. Department of Labor has classified loan officers as “non-exempt” and therefore eligible for overtime pay. The loan officers, the suit, says, discussed this with management.

“Defendants operated under a scheme to deprive loan officers of overtime compensation by classifying them as exempt, and by failing to make, keep and preserve records for their hours worked,” the suit says.

The suit seeks class action certification for anyone who worked as a loan officer for the credit union in the past three years and back overtime pay for those individuals.

 

Subscribe Now

Authoritative analysis and perspective for every segment of the credit union industry

14-Day Free Trial

No credit card required. Complete access to articles, breaking news and industry data.