Mortgage Loan Officers are Not Exempt from Overtime Pay

The Department of Labor has recently issued an opinion holding that mortgage loan officers performing typical job duties, regardless of the title affixed to them (i.e. loan originator, loan consultant, etc…) and who spend the majority of their time working in the employer’s place of business of the employee’s own office, would not qualifiy as bona fide exempt employees.

One of the three requirements for being exempt from overtime under administrative exemption is that an employee’s primary duty must be the performance of office or non-manual work directly related to the management or general business operations of the employer or the employer’s customers. The Department of Labor pointed out that mortgate loan officers’ duties are contacting potential customers based on the information generated by the employer or databses to discuss or sell loan products. These are not administrative duties because the qualify as “making sales” and not running the business.

Although this determination is not limited to just mortgate loan officers, it may be applicable to other professionals selling products out of their employer’s office.

It is important to note that the above opinion does not change the fact that cerain employees are exempt under the commissioned sales employees exemption (such as some recruiters).

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