DETROIT (WWJ) – On trial, in federal court in Detroit: online mortgage giant Quicken Loans, accused of fudging on millions of dollars in overtime.
More than 300 former employees of the company, which will soon move its headquarters from Livonia to Detroit, are suing, claiming they were employed by Quicken as sales agents and are, therefore, covered under federal overtime regulations. But the company refers to the ex-workers as “mortgage bankers,” saying their function was to advise clients about their finances and suggest certain loan programs.
Company founder and chairman Dan Gilbert, who also owns the NBA’s Cleveland Cavaliers, was in the courtroom for opening statements. A Quicken attorney hinted that the company may be open to settlement discussions. A verdict against Quicken could cost the company millions.