Wells Fargo has been ordered to pay US$97 million to home mortgage consultants (HMCs) and private mortgage bankers in California who did not receive the break periods they were entitled to under the state’s employment laws.
According to Bloomberg, a federal judge ruled that the money they were entitled to should be based not only on their hourly wages but also on their commission payments. This situation bumped the damages owed by the bank to well above the US$25 million it had argued it owed the employees involved.
The lawsuit alleging various California wage and hour labour violations was brought last year by a Wells Fargo mortgage broker in Los Angeles. District Judge Percy Anderson threw out some of the claims but allowed those relating to unfair competition and the bank’s failure to provide rest breaks.
The San Francisco-based bank has said it intends to appeal the ruling. "Wells Fargo’s compensation structure for its home mortgage consultants complies with California’s wage and hour laws, including pay for all break periods, and allows our HMCs to earn competitive, performance-based compensation," spokesman Tom Goyda said.
He added that the company planned to appeal on the basis that the court’s decision reflected “both a misunderstanding of our HMC compensation plan and a misapplication of the relevant state law".
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
Wells Fargo has been ordered to pay US$97 million to home mortgage consultants (HMCs) and private mortgage bankers in California who did not receive the break periods they were entitled to under the state’s employment laws.
According to Bloomberg, a federal judge ruled that the money they were entitled to should be based not only on their hourly wages but also on their commission payments. This situation bumped the damages owed by the bank to well above the US$25 million it had argued it owed the employees involved.
The lawsuit alleging various California wage and hour labour violations was brought last year by a Wells Fargo mortgage broker in Los Angeles. District Judge Percy Anderson threw out some of the claims but allowed those relating to unfair competition and the bank’s failure to provide rest breaks.
The San Francisco-based bank has said it intends to appeal the ruling. "Wells Fargo’s compensation structure for its home mortgage consultants complies with California’s wage and hour laws, including pay for all break periods, and allows our HMCs to earn competitive, performance-based compensation," spokesman Tom Goyda said.
He added that the company planned to appeal on the basis that the court’s decision reflected “both a misunderstanding of our HMC compensation plan and a misapplication of the relevant state law".
Emma Woollacott is a freelance business journalist. Her work has appeared in a wide range of publications, including the Guardian, the Times, Forbes and the BBC.
