Wells Fargo Mortgage Officers Awarded Class Action Status
Mortgage loan officers suing Wells Fargo have been awarded class-action status in federal court. That allows a more significant number of affected employees to join the existing suit.
Kang v. Wells Fargo Bank, according to report by National Mortgage News, focuses on the claim by the plaintiff, James C. Kang, whether alleged “claw backs” of hourly wages, vacation and separation pay from earned sales commissions violated state laws.
The suit claims Wells Fargo would allegedly compensate its mortgage sales force through advances on their commissions at a rate of roughly $12 per hour, then "claw back" the hourly pay from commissions and vacation pay as they were earned, according to the court documents.
Members of the sales force also did "not actually receive their promised vacation pay" due to the clawbacks, Kang alleges and were required to perform work they were not paid for.
According to the article, the one caveat in the judge's order granting class certification are exclusions for members of the sales force hired or rehired after Dec. 11, 2015. The bank implemented a mandatory arbitration provision for its sales force at that time.