A proposed collective and class action alleging Fair Labor Standards Act (FLSA) violations has been filed against Enterprise Bank & Trust Inc. The lawsuit comes out of Missouri federal court and was filed by a former employee who worked as a mortgage loan officer for the defendant. The plaintiff alleges that he was misclassified as an exempt employee and was unlawfully deprived of minimum wages and time-and-a-half overtime pay due to the defendant’s commission-only pay structure. From the complaint:
“Defendant did not pay Plaintiff and the Collective / Class members a guaranteed weekly salary. Instead, Defendant paid Plaintiff and the Collective / Class members on a commission-only basis that did not include either required minimum wage payments or required overtime wage payments for hours they worked beyond 40 per week.”
The lawsuit argues that the plaintiff and other mortgage loan officers were essentially salespeople and didn’t fall under any FLSA exemptions that would have allowed the defendant to deny them proper minimum and overtime wages. Loan offers were not management employees, the case continues, and were subject to the defendant’s policies and procedures at all times throughout their employment. The suit argues, therefore, that the plaintiff and other mortgage loan officers should have been paid wages in accordance with the FLSA.