UWM settles overtime case for $2.75M

Abstract

United Wholesale Mortgage settled a wage dispute with a former employee who filed a lawsuit last July claiming the company did not pay account executives for working beyond 40 hours per week. The Beydoun memo was sent to UWM employees on May 26."None of our policies or practices need to change or will change at this time, as we have always treated our account executives and team members correctly but made the decision to settle this case as is," Beydoun wrote. The complaint from Annie Haberlein said UWM considered its account executives to be nonexempt employees under the Fair Labor Standards Act and thus eligible for overtime pay after 40 hours. In 2015, the U.S. Supreme Court ruled against the mortgage industry, agreeing with a Department of Labor interpretation that the administrative exemption to the FLSA did not apply to mortgage loan officers. Wholesale account executives are sales positions but rather than dealing directly with consumers as an LO does, they work with mortgage brokerages. "Defendant told Plaintiff and other similarly situated employees that they would only work a 'Firm 40,'" Haberlein's original filing said. UWM is "Extremely confident that our account executives were and are fairly and accurately compensated for the work and time dedicated to their business," Beydoun said in the memo.