California Underwriters Owed Overtime Pay?
California underwriters may indeed be owed overtime pay. This job title and the duties of underwriters, at least at one bank, have been examined in a recently decided case called Davis v. J.P. Morgan. In this case the court in the second circuit decided that underwriters approved loans under established company guidelines and their duties are for the most part non exempt duties and therefore these employees are entitled to overtime pay.
Under Federal regulations, if an underwriter works in a bona fide administrative capacity, if they perform work “directly related to management policies or general business operations” and “customarily and regularly exercises discretion and independent judgment, then they are likely classified as an exempt employee.” This is different than an employee who may work in a “‘production’ or, in a retail or service establishment, ‘sales’ work.”
In Davis v. J.P. Morgan, underwriters at Chase were primarily responsible for selling loan products under management’s guidelines. As the Second Circuit put it, “Underwriters were given a loan application and followed procedures specified in the Credit Guide in order to produce a yes or no decision.”
California Underwriters being misclassified as exempt employees might be common issue for all underwriters in this profession in California. If the California courts follow this ruling and others like it, thousands of California underwriters could be entitled to overtime pay. Some of the largest institutions employing underwriters in California are Citigroup (NYSE: C), J.P. Morgan (NYSE:JPM) Bank of America (NYSE:BAC) and Wells Fargo (NYSE:WFC)
Underwriters in California, if owed overtime pay, may collect up to 4 years of back pay under the liberal California overtime pay laws.
If you are a California underwriter and would like to find out if you are entitled to overtime pay, it is wise to contact a California labor law attorney.
You can call our local office at: (619) 342-1242
Photo Credit: Shutterstock/Rawpixel.com