Story Published:
Jun 6, 2006 at 12:49 PM PST
Story Updated:
Aug 31, 2006 at 7:27 AM PST
SEATTLE - Two law firms representing former employees of
Washington Mutual Inc. in New York, California and Illinois have
sued the Seattle-based savings and loan, accusing the company of
violating labor laws by failing to pay overtime and the federal
minimum wage.
The complaint, filed Monday in New York federal court, alleged
that in some cases, Washington Mutual home loan consultants were
not paid for hours they worked on a case if they did not close the
loan.
The lawsuit names three plaintiffs who once worked as Washington
Mutual home loan consultants: one in Hauppauge, N.Y., one in
Modesto, Calif. and one in Chicago.
The law firms of Nichols Kaster & Anderson, PLLP, based in
Minneapolis and New York-based Outten & Golden LLP said they will
ask that the case be certified as a class action that includes
current and former home loan consultants who worked for the company
nationwide.
The firms say home loan consultants at Washington Mutual
regularly work more than 40 hours a week and have not received
overtime pay for all the hours worked.
In a statement e-mailed to The Associated Press, Washington
Mutual spokeswoman Libby Hutchinson said the company had no comment
on the allegations because it had not yet seen the complaint.
"However, we believe our compensation practices are fair and
ethical, and we will vigorously defend our company against the
allegations made," Hutchinson said.
Federal labor law allows companies to exempt some workers from
overtime, but Donald Nichols, one of the attorneys on the case,
said neither the plaintiffs' job duties nor Washington Mutual's
compensation plan qualified them for the exemption.
"The law does not allow employers to avoid paying overtime
compensation to people who handle mortgages and loans on a strictly
commission basis," another attorney, Jack A. Raisner, said in a
news release Tuesday. "Paying them less than minimum wage when
their commissions dip is particularly harsh given the long hours
these people work."