Overtime Lawsuit Filed On Behalf Of Mortgage Loan Modification Processors Paid On A “Piece Rate” Basis.

On December 1, 2012, the law firm filed an overtime lawsuit on behalf of mortgage modification processors who were not paid overtime. The complaint alleges that the loan processors were paid a set fee for each stage the file was in as of payday but that they were not compensated an additional amount for hours worked over 40 in a workweek in violation of Section 216(b) of the Fair Labor Standards Act of 1938 (“FLSA”).

For example, the processors were paid $100 for each file that was approved for mortgage modification by the lender, $20 for each file that was denied for modification by the lender, $50 for each file for which the lender postponed a foreclosure, etc. However, although the processors allege that they worked well over 40 hours each week, their pay did not change to compensate for overtime hours.

Under the federal FLSA overtime laws, being paid per file or per job is called “piece rate” pay. Compensating employees on a piece rate basis is allowed under the FLSA. However, employers must still pay piece rate employees for overtime work. These employees are entitled to one-half of the regular rate of pay for each overtime hour plus the amount of their regular piece rate pay. This means that if an employee who is paid on a piece rate basis works 50 hours in a workweek and earns $500, their regular hourly rate amounts to $10. Therefore, the piece rate employee would be entitled to an additional $5 per overtime hour or a total of $50 for that week.

Additionally, the piece rate lawsuit seeks liquidated damages also known as “double damages,” attorneys’ fees, and costs. If you are a piece rate employee and want to know if you are being properly paid, contact Atlanta overtime attorneys