Topic: Human Resources
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A recent U.S. Supreme Court decision confirms the Department of Labor’s determination that mortgage loan originators (MLOs) are nonexempt and entitled to overtime pay. Does that rule also apply to commercial loan officers? The DOL’s Administrative Interpretation No. 2010-1 seems to indicate in an example on page seven that commercial lenders are exempt employees.
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It depends. A commercial loan officer is not automatically exempt, but he or she may be exempt based on the specific facts of the arrangement. The DOL Interpretation does not distinguish between consumer loan officers and commercial loan officers. Instead, it bases its conclusion on the “typical job duties” of a mortgage loan officer (e.g.,…
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What are the risks for hiring NMLS-registered mortgage loan originators who have bankruptcies or numerous collection items on their credit reports? Can we have two different standards, one for unregistered originators and another for registered originators?
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We believe that hiring a mortgage loan originator (MLO) with a bankruptcy or numerous collection items could pose some risks under the Regulation Z, which requires you to run credit checks and assess each loan originator’s financial responsibility, character, and general fitness, among other requirements. However, the degree of risk would depend on the specific…
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Can we reduce our required consecutive vacation time from two weeks to five days? We know this is suggested by the federal banking regulators, but is there an Illinois law that requires two consecutive weeks?
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No, we are not aware of any Illinois law that requires two consecutive weeks of vacation time. As you noted, the federal banking agencies, including the FRB, strongly recommend that bank employees and officers take two consecutive weeks of vacation per year, although this requirement is not found in any law or regulation. We are…
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Who is the state “employment service delivery system” for purposes of fulfilling our job listing requirements under the Vietnam Era Veterans’ Readjustment Act of 1972 (VEVRAA)?
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We believe that the Illinois Department of Employment Security (IDES) labor exchange website (www.IllinoisJoblink.com) is the appropriate state “employment service delivery system.” The Department of Labor states that listing employment openings with the “state workforce agency job bank … will satisfy the requirement to list jobs with the local employment service delivery system.” Because the…