Former loan officer alleges Guaranteed Rate failed to pay proper overtime wages

By John Breslin | May 19, 2018

OAKLAND – A mortgage company is facing a class action over claims it failed to pay its employees proper compensation when calculating overtime.

OAKLAND – A mortgage company is facing a class action over claims it failed to pay its employees proper compensation when calculating overtime.

Plaintiff Chun Ping Turng filed the complaint against Guaranteed Rate in the U.S. District Court for the Northern District of California on May 4 citing the Fair Labor Standards Act and California Labor Code.

Ping Turng claims the Chicago-headquartered company "failed to properly incorporate these commission and bonus payments into the regular rate of pay when calculating overtime compensation."

The plaintiff is taking the action on behalf of all persons in the U.S. employed by the defendants as loan officers, loan originators, mortgage professionals and loan processors who worked for the company in the three years prior to the filing.

He alleges the failure to incorporate commission and bonus payments into the regular rate of pay when calculating overtime "directly led to defendants undercompensating plaintiff and all other similarly situated employees for overtime hours worked."

Further, it is accused of failing to pay the California class premium wages owed for overtime hours worked based on the legally required “regular rate” including any commission and/or bonus wage compensation.

The defendant also allegedly failed to timely pay all wages owed upon discharge or resignation, the complaint states, adding that it also failed to provide plaintiff and the others with complete and accurate payroll/wage statements and/or reports in accordance with California law.

Ping Turng alleges was a loan officer with the company between 2015 and 2016. During his employment with Guaranteed Rate, he alleges he regularly worked in excess of eight hours a day and in excess of 40 hours a week, according to the complaint.

The mortgage lender announced last week it was laying off about 180 employees around the country following a drop in the number of new mortgage loans in 2017, the Chicago Tribune reported. The company employs 3,200 workers nationally.

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