Under the new test, the employee must meet the following to qualify: (a) be paid a salary of at least $450 per week, (b) have a primary duty consisting of the performance of office or non-manual work directly related to management policies or general business operations of the employer or its customers, and (c) the primary duty must include the exercise of discretion and independent judgment with respect to matters of significance.  Members having specific questions or who are in need of additional information should consult the Department of Labor website at www.dol.gov . Detailed summaries are available there along with side-by-side comparisons of the old and new regulations. There is also a useful "Myth vs. Fact" summary located on the NAMB website in the Members Only section. You can log on using your NAMB Member Number, and your last name is your password. To find your NAMB Member Number, look on the mailing label on your copy of National Mortgage Broker Magazine, or call NAMB at (703) 610-9009.

The U.S. Department of Labor has already been actively investigating the mortgage brokerage industry in Western Pennsylvania and West Virginia, finding numerous violations. Penalties can be significant, including: two years of back wages, or three if the violation is found to be willful; the back wages can also be doubled if the violation is willful; a $1,000 civil penalty per violation if there are repeated willful violations; attorney¹s fees and costs; and there is the possibility of criminal penalties with both corporate and individual liability for willful violations.

* This Update is for informational purposes only and is not to be considered legal advice or opinion. Members with questions or concerns regarding compliance issues should consult outside counsel.
 

Department of Labor Changes to Minimum Wage Laws (PDF)