Loan Officers Sue Federal Savings Bank for FLSA Violations

Stephan Zouras, LLP represents current and former loan officers in a class and collective action seeking unpaid minimum and overtime wages.

Plaintiffs allege that The Federal Savings Bank, a residential mortgage company, failed to pay its loan officers a guaranteed salary and misclassified them as “exempt” to avoid paying minimum and overtime compensation. Plaintiffs also claim the defendant failed to record actual time worked by its loan officers in violation of the Fair Labor Standards Act “FLSA” and applicable state wage law.

On May 20, 2016 the Court granted conditional collective certification for 600 “outside sales” loan officers nationwide, alleging The Federal Savings Bank willfully violated the Fair Labor Standards Act by misclassifying them as “exempt” and depriving them of overtime pay.

Plaintiffs seek to recover unpaid earned wages, liquidated damages, attorneys’ fees and other damages on behalf of “inside sales” loan officers who worked anywhere in the United States.

You can find answers to frequently asked questions about loan officers lawsuits here , however if you work or worked as a loan officer and would like more information on your wage rights, contact us.


All too often, employers try to take advantage of their employees by not properly compensating them for time worked in violation of federal and state law. The Fair Labor Standards Act (FLSA) requires employers to pay employees 1 1/2 times their regular rate of pay for all hours worked over 40 each workweek unless they are properly classified as “exempt.”

The law requires the employer to satisfy very strict requirements to properly classify an employee as an exempt professional, executive, administrator, intern or some other recognized category of exemption.

The FLSA also requires employers to keep accurate time records of all employees. Some employers try to skirt the law by paying only for “scheduled” time worked or paying based on an estimated or otherwise inaccurate time.

An employer’s failure to make and maintain accurate time records and paying for all time worked can have serious consequences. In such cases, employees are eligible to seek damages in addition to all unpaid wages including double (or “liquidated”) damages, back interest, attorney’s fees and costs.

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