Issues: Unpaid Overtime, Misclassification

On August 29, 2024, a former underwriter in New Jersey filed a class action lawsuit against Valley National Bank for unpaid overtime for Underwriters employed by the bank in the New Jersey area and nationwide. The lawsuit specifically seeks to recover unpaid overtime wages and other damages under the New Jersey Wage & Hour Law (“NJWHL”) and the Fair Labor Standards Act (“FLSA”) for the bank’s Underwriters.

In the mortgage industry, the primary duties of an underwriter are to verify the information provided by applicants in loan applications and compare the information to the bank’s guidelines for loan products to see if the customer meets the bank’s guidelines. These duties are more functional than discretionary because underwriters do not determine the Bank’ guidelines, do not determine what loans or offered or how they are funded, and do not determine the direction of the Bank’s business.

In order to avoid paying Underwriters and other similar salaried workers overtime for hours worked in excess of 40 per workweek, Valley National Bank allegedly misclassified them as exempt from the overtime provisions of the FLSA and the NJWHL.  The lawsuit alleges that Underwriters should not be exempt from receiving overtime pay under the FLSA and the NJWHL.

If you work for Valley Bank or a similar company in the financial services industry, make sure you are getting paid for all of your hours worked and at the correct rate. Unfortunately, this industry is notorious for skirting wage laws in order to save on labor costs. You can reach our firm, Fitapelli & Schaffer, LLP, for a free and confidential consultation at (212)300-0375 or you can visit our website here for additional helpful information regarding your work rights. You will be able to address your concerns with one of our experienced attorneys and see if you may have a wage claim.

You may also view the filed complaint here.