Loan originator files two class actions in federal court

By Steve Gonzalez | Dec 27, 2005

Derrick Perry filed two class action cases against his former employers in federal court Dec. 19, alleging they failed to pay him overtime in violation of the Fair Labor Standards Act (FLSA) of 1938.

Perry, a loan originator for Wells Fargo Home Mortgage and National City Mortgage, claims that during the past three years he regularly worked far in excess of 40 hours per week, including regularly scheduled hours on weekends but was only paid by commission.

He claims that loan originators are eligible for repayable draws of up to $2,000 per month in case their commissions did not equal that amount in any given month, but were not compensated for any substantial overtime hours worked.

Perry also claims that loan originators are not required to record their time worked, and that Wells Fargo and National City failed to maintain accurate time records as required by the FLSA.

According to the suit, the defendants' willfully violated the FLSA by failing to pay overtime. Perry further claims that he and other employees are victims of a uniform and company-wide compensation policy that is in violation of the FLSA.

Perry claims his primary duties were to communicate with potential customers and originate mortgage loan products.

According to Perry, if a customer showed interest in obtaining a mortgage, he would complete an application and forward it to a loan underwriter for an approval decision, but had no authority to approve or deny the loan.

"Plaintiff and all similarly situated employees are entitled to damages equal to the mandated overtime premium pay within the three years preceding the filing of this complaint, plus periods of equitable tolling, because the defendants acted willfully and knew or showed reckless disregard for the matter," the complaint filed by Michael Marker of the Rex Carr Law Firm in East St. Louis states.

Perry is seeking compensatory damages, liquidated damages, attorneys' fees and costs, pre-judgment and post-judgment interest and any other relief the court deems fair.

The cases have been assigned to District Judge David Herndon.

Want to get notified whenever we write about Wells Fargo & Company ?

Sign-up Next time we write about Wells Fargo & Company, we'll email you a link to the story. You may edit your settings or unsubscribe at any time.

Organizations in this Story

Wells Fargo & Company

More News

The Record Network