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Proposed Overtime Rule Could Hit Lenders' Bottom Line
Friday, February 12, 2016
A proposed new rule from the U.S. Department of Labor (DOL), if enacted, could significantly impact mortgage workers' paychecks, and affect mortgage companies' bottom line. The proposed change to the requirements of the Fair Labor Standards Act (FLSA) for exempting an employee from overtime pay, could affect 4.6 million workers according to DOL estimates.
Under current rules an employee qualifies for the "white collar exemption" if they meet two tests.
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- The "salary level test". The employee must be paid a fixed salary of at least $455 per week ($23,660 on an annual basis).
- The "duties test". The employ must primarily perform executive, administrative, or professional duties as outlined by DOL.