Provident Bank Must Pay Overtime to Mortgage Underwriters

July 5, 2017, 6:21 PM

Provident Savings Bank must pay overtime pay to mortgage underwriters who work more than 40 hours a week, the U.S. Court of Appeals for the Ninth Circuit ruled. The decision deepens a split among federal circuit courts on whether a Fair Labor Standards Act exemption applies to such employees (McKeen-Chaplin v. Provident Sav. Bank, FSB, 2017 BL 230858, 9th Cir., No. 15-16758, 7/5/17).

The Ninth Circuit July 5 joined the Second Circuit in holding that mortgage underwriters’ primary duties don’t involve the “exercise of discretion” or “independent judgment” needed to classify them as exempt administrative employees. The Sixth ...

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