Planet Home Lending, a residential mortgage lender, is currently facing a lawsuit filed by a former employee. The lawsuit alleges that the company violated the Fair Labor Standards Act (FLSA) and the California Labor Code by not properly compensating its loan officers for overtime work. This article will delve into the details of the lawsuit and what it means for both the company and its employees.
Background of Planet Home Lending
Planet Home Lending is a national residential mortgage lender with its headquarters in Connecticut. The company was founded in 2007 and has since expanded to over 45 states. It offers a variety of loan programs for first-time homebuyers, veterans, and those with less-than-perfect credit.
The Lawsuit
The lawsuit against Planet Home Lending was filed in August 2021 by a former loan officer, who claims that the company failed to pay her and other loan officers overtime wages. According to the complaint, loan officers were expected to work more than 40 hours per week but were not adequately compensated for the additional time.
The lawsuit also alleges that Planet Home Lending misclassified its loan officers as exempt from overtime pay, even though their job responsibilities did not meet the criteria for exempt status. This misclassification meant that the company was able to avoid paying its loan officers the overtime wages they were entitled to under the law.
FLSA and California Labor Code Violations
The Fair Labor Standards Act (FLSA) is a federal law that establishes minimum wage, overtime pay, and other wage-related regulations for employees in the United States. The California Labor Code is a set of state laws that governs employment practices in California.
The lawsuit against Planet Home Lending alleges that the company violated both the FLSA and the California Labor Code by not properly compensating its loan officers for overtime work. Under both laws, non-exempt employees are entitled to overtime pay for any hours worked over 40 in a workweek.
Potential Consequences for Planet Home Lending
If the lawsuit against Planet Home Lending is successful, the company may be required to pay its loan officers back wages for any overtime work they performed but were not compensated for. Additionally, the company may be required to change its employment practices to ensure compliance with the FLSA and California Labor Code going forward.
Furthermore, if other loan officers come forward with similar claims, it could result in additional lawsuits against the company. This could lead to significant financial and reputational damages for Planet Home Lending.
What This Means for Employees
If you are a current or former loan officer with Planet Home Lending, you may be eligible to participate in the lawsuit against the company. However, it is important to note that you must opt-in to the lawsuit in order to be included as a plaintiff.
If you believe that you have been improperly compensated for overtime work, you may also have options for seeking compensation outside of the lawsuit. It is recommended that you consult with an employment attorney to discuss your legal options.
Conclusion
The lawsuit against Planet Home Lending serves as a reminder that employers must properly classify their employees as exempt or non-exempt and ensure that they are being properly compensated for all hours worked. The outcome of this lawsuit could have significant ramifications for both the company and its employees, and it is important to stay informed about any developments in the case.