Wage Lawsuit Accuses Mortgage Company Of Unlawful Pay Practices

A common myth is that all commissioned employees can work unlimited hours without being paid overtime. While employees may not fully understand when they are entitled to overtime, sometimes employers themselves are unaware of overtime rules. In other cases, they may deliberately and unlawfully avoid paying workers what they are owed.

A loan officer sued Draper and Kramer Mortgage Corporation in September 2020, accusing his former employer of not paying employees commissions and overtime. The lawsuit was filed in the U.S. District Court for the Northern District of California.

Jose Vasquez took legal action on behalf of other loan officers who worked for the company. Draper and Kramer allegedly tried to avoid or delay the payment of commissions and did not pay Vasquez for non-sales work. The employer also did not provide loan officers with paid rest breaks and adequate meal periods.

In California, commissioned employees are not automatically exempt from overtime. Vasquez and his coworkers often worked over eight hours per day or over 40 hours a week and qualified for overtime. The lawsuit contended the mortgage company’s compensation policy violated state law by not paying employees any other compensation besides the commissions outlined in the employment agreement.

If your employer is not paying you the overtime and commissions you have earned, speak to a San Francisco Bay Area employment lawyer at McCormack Law Firm. We can help you understand your rights as an employee. Contact us today for a free initial consultation.