This lawsuit alleges that Emery Federal Credit Union and Employees Federal Credit Union violated federal and state employment laws by failing to pay loan officers time and a half for all overtime work. Additionally, because loan officers worked on commissions, the complaint alleges that the two credit unions may also have violated federal and state minimum wage laws.
So the law is straightforward: Unless an employee is exempt, that employee is entitled to time and a half for all overtime worked.
Loan officers were generally considered exempt under what is called the “administrative” exemption. Recently the law has changed and now loan officers must be paid overtime wages (unless another exemption applies).
The named plaintiffs in this matter were former or current loan officers at these two credit unions. It is alleged that the two credit unions would give each loan officer a draw against future commissions and would in fact deduct the draw. In other cases, employees allege they did not receive a draw at all but only got paid if a commission was earned.
In this case it is alleged that the two credit unions did not maintain accurate records of the days and hours employees worked, which under state law may be a separate violation of the law.
This case was filed in late July, 2015. It is unlikely that the credit unions will have to file a response to the complaint until late September or early October, 2015. Look for a quick settlement. (A guess only.) We will update the matter in mid October.