Escrow Officer Salary Lawsuits: Underpaid Overtime, Breaks, Off-the-Clock Work?

Attorneys working with ClassAction.org are looking into whether class action lawsuits can be filed on behalf of escrow officers in California for potential violations of state labor laws.

They believe some escrow officers may not have been paid proper wages, including for overtime, breaks, off-the-clock work and using their personal devices for work purposes.

Are Escrow Officers Underpaid for Overtime, Off-the-Clock Work?

Under California labor laws, hourly employees must be paid for all time that the worker is under the employer’s control, including for off-the-clock tasks performed before or after a scheduled shift. Further, workers must be paid at the promised rate and must receive at least the minimum wage for all hours worked.

California labor laws also require that all covered employees (i.e., “nonexempt employees”) must receive overtime pay for all hours worked in excess of eight per day or 40 per week, and for the first eight hours worked on the seventh consecutive work day in a week. Workers are to be paid one-and-a-half times their regular pay rate for overtime hours, or double their pay rate for any hours worked in excess of 12 in a day or in excess of eight on the seventh consecutive work day.

An employee’s regular rate of pay includes any compensation they normally receive for their work, such as their hourly wages, salary and commissions. Importantly, if commissions are left out of a worker’s regular pay rate when calculating their time-and-a-half overtime rate, they could be getting underpaid for overtime.

California law also requires that employers pay proper overtime wages even if the employee was not authorized to work overtime.

Though some employees are considered exempt from California overtime laws, the attorneys believe escrow officers may not be eligible for any of the exemptions, even if their employers classify them as exempt. In fact, many lawsuits have been filed against employers who allegedly misclassify their workers as exempt employees in order to avoid paying overtime or providing other protections under state and federal labor laws.

Are Escrow Officers Entitled to Breaks?

Under California law, nonexempt employees are entitled to meal and rest breaks if they work a certain number of hours per day.

In general, employees who work more than five hours must be provided with a meal break of at least 30 minutes during which they are completely relieved of all duties, and a second meal break when they work more than 10 hours. If the break is interrupted or the worker is not permitted to leave the employer’s premises, the break is considered “on duty” and must be paid at the worker’s regular pay rate. The California Department of Industrial Relations specifies that it is illegal for an employer to pressure employees to work through breaks, including by scheduling them in a way that makes taking breaks difficult.

Most nonexempt employees are also entitled to a 10-minute paid rest period for every four hours worked or “major fraction thereof.”

Employees who are denied proper breaks under California law are entitled to one hour of pay at their regular rate for each day in which a required break was not provided.

Reimbursement of Business Expenses

The California Labor Code provides that employers must reimburse employees for “all necessary” expenses or losses they incur in performing their duties. This could include reasonable costs of using a personal cell phone, computer or other device to perform work-related tasks.

How Could a Lawsuit Help?

If filed and successful, a lawsuit could help California escrow officers get back money they may be owed due to violations of the state’s labor laws, including unpaid overtime, unpaid wages for off-the-clock work or denied breaks, and reimbursement of business expenses. It could also force their employers to change their pay practices and policies.

Notably, California labor laws prohibit employers from retaliating against employees who exercise their rights, including by filing or joining a lawsuit.

What You Can Do

After you get in touch, an attorney or legal representative may reach out to you directly to ask you some questions and explain how you may be able to help get a lawsuit started on behalf of yourself and other escrow officers. It doesn’t cost anything to fill out the form or speak with someone, and you’re not obligated to take legal action after learning more about your options.

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