WaMu Sued For Alleged Labor Law Violations

WaMu Sued For Alleged Labor Law Violations

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Story Published: Jun 6, 2006 at 1:49 PM PDT

Story Updated: Aug 31, 2006 at 8:27 AM PDT

By Associated Press

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."

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