Underwriters Are Entitled to Overtime Pay

Underwriters tasked with approving loans in accordance with detailed guidelines provided by their employer are not exempt – that is, they are entitled to overtime.

Many employers misclassify their Underwriters and deny them overtime. These employers have long justified the misclassification on the “administrative exemption.” This week, the Second Circuit Court of Appeals finally laid this matter to rest. Underwriters perform “production” work, not “administrative” work. They do not advise customers as to the best loan products, and they don’t set management policies or perform HR or advertising functions. They merely handle the “production” end of loan processing – “the fundamental service provided by the bank.” As a result, they do not qualify for the exemption and are thus entitled to overtime.

If you have been working as an Underwriter, but paid a salary without time-and-one-half pay for overtime, give us a call.