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#2255053 - 06/09/21 03:44 PM MLOs an Exempt Employee or Not?
ccman Offline
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Joined: Sep 2007
Posts: 890
Our HR Mgr. is claiming that our mortgage loan originators and loan officers in general are exempt employees due to the change the DOL
issued in May 2020. Has there been any updates or guidance from the DOL on whether bank loan originators are Exempt
Employees under the FLSA?

I did find an article in August 2020 that highlights the issues in making the case that a bank's MLOs may be eligible to be classed as "exempt" under the FLSA, but caution should be exercised in making the claim.

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Loan Originator Compensation Rule
#2255060 - 06/09/21 04:28 PM Re: MLOs an Exempt Employee or Not? ccman
rlcarey Offline
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rlcarey
Joined: Jul 2001
Posts: 76,786
Galveston, TX
I am not aware of anything specifically new on this issue and there are tons of articles written on the issue. I personally would not be making decisions without input from an employment attorney.
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#2255061 - 06/09/21 04:32 PM Re: MLOs an Exempt Employee or Not? rlcarey
ccman Offline
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Joined: Sep 2007
Posts: 890
Thanks. The most recent article I could find was the one referred dated August 2020 which is after the DOL effective date of May 2020.

The ABA article only addresses the retail business angle and leaves you guessing.

What are you other banks doing? Making a Risk Tolerance decision on the matter? or has your HR Department made a call on whether to
exempt MLOs?

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#2256571 - 07/12/21 05:48 PM Re: MLOs an Exempt Employee or Not? ccman
John Burnett Offline
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John Burnett
Joined: Oct 2000
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Cape Cod
Believe me, this is not a "one-size-fits-all" decision. It can depend on several variables, and I cannot recommend basing one bank's decision on what "other banks are doing." You can't make an informed risk-based decision without knowing what the risks are, and that is where you need to talk to an attorney that is well versed in employment and the Labor Department's rules in particular.
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