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Escrow Officers and Closers Unpaid Overtime Claims

In a recent court ruling, a Fresno County judge ruled that 250 escrow officers were misclassified as exempt employees and were entitled to unpaid overtime from 2003 to 2012. The ruling also allowed the 340 other alleged unauthorized escrow officers to sue for millions of dollars in unpaid overtime and lack of lunch and rest breaks. Despite their vital roles at the closing table, escrow officers and closers aren’t entitled to overtime compensation.

Escrow officers and closers produce paperwork for title companies

If you have a flair for details, you may be interested in a career as an Escrow Closer. In addition to managing a wide variety of real estate-related matters, this position also requires good communication skills. In this fast-paced career, you will gain an understanding of the intricacies of real estate and its legal nuances. In addition, you’ll learn more about the industry than you could ever imagine!

The role of escrow officers and closers varies from state to state. In most states, the role of a settlement agent is to follow the instructions of the parties. These instructions are provided either orally or in writing. If the parties don’t agree, the closer’s role is limited. In a table closing, the parties are dealing directly with each other. Escrow officers and closers can’t sign a document until it’s signed by both parties.

They exercise decision-making

The Fair Labor Standards Act protects employees from wage theft and provides minimum wage, recordkeeping, and child labor standards. Most employees are entitled to overtime pay. The law defines overtime as any work performed beyond 40 hours per week. However, many employers wrongfully classify escrow officers and closers as exempt employees. Because of their work hours and responsibilities, these workers may be eligible to file a class action lawsuit.

In the Escrow Officers and Closers (EOC) Unpaid Overtime Claims lawsuit, Gallegos, a former escrow officer with Netco, says that he was not paid for overtime hours that he performed before his reclassification in late 2004. The plaintiffs contend that the law prohibits escrow officers and closers from being classified as exempt under FLSA.

They produce paperwork for closings

The Fair Labor Standards Act (FLSA) sets minimum wages, employee benefits, record-keeping, and child labor standards. Many employees, including escrow officers and closers, are entitled to overtime pay. Overtime is considered work beyond forty hours per week. However, some employees are not eligible for overtime. Often, employers wrongly classify escrow officers and closers as exempt from overtime pay. As such, they are eligible to file a class-action lawsuit to get paid overtime.

As a result of the unfair practice, hundreds of escrow officers and closers are eligible to file a class action lawsuit to recover their lost wages. According to the lawsuit, Netco misclassified escrow officers and closers as exempt employees and subsequently failed to pay them the overtime they earned before the reclassification. The plaintiffs claim that these employees have been denied their right to rest and get lunch breaks.

They are exempt from overtime

In the first case, the trial court held that branch managers spent 95 percent of their time performing the same work as senior escrow clerks. Only five percent of their time was spent on managerial duties. Nevertheless, the trial court concluded that the employees were wrongly classified as exempt from overtime claims, and therefore were not entitled to overtime wages. Escrow officers and closers are exempt from overtime claims, but this is only one example.

Some banks can qualify for the highly compensated employee exemption by paying their employees a total compensation of $107,432 per year. However, the recent changes to overtime regulations have increased the total compensation required to qualify for HCE exemption. Therefore, employers should ensure that their workers meet the requirements for HCE status. Escrow officers and closers may be eligible to file a class action lawsuit if they were improperly classified.

They are not treated as administrative personnel

Before, escrow officers were not treated as administrative personnel. Today, escrow officers and closers are treated as essential members of the real estate team. They are responsible for sending and receiving loan packages, ordering and returning termite inspections, checking for home association dues, typing contracts, and returning recorded documents to lenders, sellers, and buyers. In addition, they are responsible for sending other types of documents to be recorded.

In addition to the statutory definition of an administrative employee, the FLSA also recognizes that escrow officers and closers are not considered administrative employees. While such employees may not perform executive-level tasks, they are not expected to exercise independent judgment or discretion regularly. Even though they work closely with other administrative personnel, they do not have managerial duties or decision-making authority.

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