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.

Comments (7)
  1. John says:

    I was in the mortgage business back in 2004 (working 60-70 hours a week), and EVERYONE in the business knows that it is 100% commission – you do NOT get paid overtime. Plus, Blue Cross employees do not get paid for overtime, EDS employees did not get paid for overtime, and as far as I knew, Compuware employees did not get paid for overtime.
    I don’t believe these ex-workers have a case.

  2. Jeff Crossman says:

    The FLSA requires the payment of overtime to employees unless they are “exempt.” The trial will no doubt involve questions over the specific job duties and whether or not they meet the legal definition of “exempt.” Otherwise, Quicken could end up paying all unpaid overtime, attorneys’ fees, and treble (triple) damages as its penalty.

  3. Dan says:

    What is their union rep saying about this.Oh wait, they must not belong to a union. But I ‘m sure most all of these workers will curse at people who are in unions.

  4. Really says:

    This company is so scandalous it’s ridiculous. One Regional Vice President punched his sales director in the face and kept his job in front of tons of people. They press the mute button on the phone while mocking clients for getting suckered into taking a loan, while high fiving their sales director. If they did an undercover video operation on this place, I promise it would be shut down in one day from all the uproar. They stay under the radar cause they only have .5% of the mortgage marketplace. There is a reason most bankers there are recent college grads who don’t know any better to talk back when they are disrespected by their bosses. The main question here is that if you’re told what to do and MADE, yes I said MADE to work 60-70 hours regardless of commission structure then that is grounds for overtime.

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