Mortgage Loan Officer Doesn’t Meet Administrative Exemption
Your World Just Got More Confusing
As if your HR world isn’t perplexing enough, the Department of Labor (DOL) has abandoned its former position (Opinion Letter, FLSA 2006-31) that mortgage loan officers could potentially qualify as exempt employees under the Administrative test of the Fair Labor Standards Act. In a new “Administrator’s Interpretation” the DOL concludes that the earlier Opinion was based on an inappropriate assumption, that mortgage loan officers provide work directly related to an organization’s business operations. The consequence for employers is that mortgage loan officers will generally be required to be treated as nonexempt and paid overtime.