Supreme Court to decide case on loan officer pay

by Ryan Smith18 Jun 2014
The Supreme Court has agreed to hear a dispute over whether mortgage loan officers are exempt from regulations governing minimum wage and overtime pay.

Two related cases are at the heart of the dispute, according to a Reuters report. They concern a 2010 decision by the Labor Department reversing a 2004 finding that concluded loan officers were exempt from the regulations.

That reversal was challenged by the Mortgage Bankers Association, which contends that the government was required to conduct a formal rule-making process before reversing the original rule. The government said it didn’t have to conduct the rule-making process because it was simply offering a new interpretation of an existing regulation, according to Reuters.

A district court ruled for the government, but that decision was thrown out in June by the U.S. Court of Appeals, which said a formal rule-making process was required.

Oral arguments on the case and a decision are expected to come during the court’s next term, which begins in October.
 
 

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