D.C. Circuit Nixes 2010 DOL Interpretation that Loan Officers Are Hourly Employees

By Kelline R. Linton,
Junior Associate.


In a Fair Labor Standards Act (“FLSA”) case on Tuesday (July 2), the D.C. Circuit Court of Appeals invalidated the 2010 DOL interpretation that declared loan mortgage officers were hourly employees.  The Court’s holding was not based on the merits of the 2010 interpretation; rather, the Court found the DOL failed to properly follow the rulemaking process before reversing their previous stance that loan officers were salaried employees within the FLSA’s administrative exemption.  This means the Court left the door open for the agency to readopt its 2010 guidance.


Bottom line: Employers should probably move cautiously before reclassifying any of their loan mortgage officers to salaried employees.  The law may once again soon provide that such officers are hourly employees if a court takes the case on its merits or if the DOL readopts its 2010 interpretation through the proper rulemaking process.  Call us if you have any questions.


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