JP MORGAN CHASE SETTLEMENT

JP Morgan Chase recently settled a class action lawsuit encompassing thousands of loan underwriters for $42 million. The settlement covers Federal law- the Fair Labor Standards Act and many state laws. Chase alleged the underwriters were exempt from receiving overtime pay. However, an appeals Court and the Department of Labor issued opinions stating that mortgage loan officers and underwriters cannot be paid commission only and must be paid minimum wage and overtime. This is a very significant case, as the industry standard was to pay loan officers incorrectly.