Loan Officer Overtime Rights

Loan officers, mortgage loan officers, retail mortgage account executives, account managers, home mortgage consultants, and bank officers engaged to sell financial products in the lending industry typically have an entitlement to overtime under federal law. If a financial services employer fails to provide its loan officers with commission guaranties or draws that amount to less than $455 per week, he will be owed overtime if he customarily works from his employer’s or his own home office.

Loan Officer Overtime: Questions to Determine Overtime Eligibility

If a loan officer answers “yes” to the following questions, a loan officer is almost always due overtime and unpaid wages:

  1. Does the loan officer spend less than approximately three hours a week making direct sales to customers?
  2. Is the loan officer’s primary duty making sales?

Key Points: If a loan officer’s employer does not pay a salary, the loan officer is due overtime if (1) his primary duty involves sales and (2) he spends less than approximately 3 hours a week making direct sales to customers.

Continue reading to learn more about the overtime exemptions that may be applicable to loan officers. In the event you still have questions after reading the following information, please give us a call at (214) 790-4454 or email at

Loan Officer Overtime: DOL Finds Administrative Overtime Exemption Inapplicable

The administrative exemption allows employers to avoid paying a loan officer employee overtime when the employee’s primary duty is “the performance of office or non-manual work directly related to the management or general business of the employer or the employer’s customers.”

In 2010, the Department of Labor determined that the exemption does not typically apply to loan officers because “loan officers typically have the primary duty of making sales on behalf of their employer; as such, their primary duty is not related to the management or general business operations of the employer or the employer’s customers.”

Because the administrative exemption does not apply to loan officers, loan officers seeking overtime are typically due overtime if they can rule out the “Outside Sales” exemption discussed below.

Loan Officer Overtime: Outside Sales Exemption

The outside sales exemption allows employers to avoid paying their loan officer employees overtime only if:

  • The employee’s primary duty is making sales, or obtaining orders for contracts for services or for the use of facilities for which consideration will be paid by the client or the customer; and
  • The employee must be customarily engaged away from the employer’s place of business.

A loan officer employee who spends less than 50% his or her time engaged in outside sales does not qualify for the outside sales overtime exemption. Loan officers should keep in mind that the definition of outside sales does not “include sales made by telephone or the Internet unless those sales are merely adjunct to in-person sales visits with clients.”

Additionally, loan officers should keep in mind that any fixed site—including a home office—may be considered an “employer’s place of business,” despite the employer not formally owning or renting the employee’s home office property. A fixed site qualifies as an employer’s place of business under this exemption when it is used as a headquarters or for telephone sales.

Loan Officer Overtime: Contact Us

Our overtime attorneys encourage loan officers to give us a call for advice regarding their rights to unpaid overtime and wages. We help loan officers apply complex wage law to the employee’s particular circumstances to see if we can recover wages and overtime from their former or current financial services employer.

If our attorneys determine that a loan officer has a case, we take the case on contingency. This simply means that a loan officer client doesn’t owe us a dime unless we recover against his or her employer. Because of this arrangement, we only take good cases with good clients that we believe in.

Please give our overtime and unpaid wage attorneys a call today for a free consultation. You can reach the Siegel Law Group by either calling us at (214) 790-4454 or using the contact form found below.

Jack Siegel is the overtime attorney responsible for this website.
The Siegel Law Group’s overtime attorneys have a principal place of business in Dallas, but litigate unpaid wage and overtime cases for employees and misclassified independent contractors throughout Texas and the entire country.