In Re Wells Fargo Home Mortgage Overtime Pay Litigation

527 F.Supp.2d 1053 (N.D. Cal. 2007)

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Nature of the Case

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Facts

Ps are Home Mortgage Consultants (HMC) who were or are employed by Wells Fargo (D). D employs about 10,000 of these HMC’s nationwide. About 20% are employed in California. Their primary duty was to sell mortgage loan products. They spend considerable time engaged in clerical tasks, and all receive compensation on mortgage products they sell. Until 2005, none qualified for a minimum draw. D classified all HMCs as exempt from overtime requirements under the FSLA. No records were kept of their hours worked. Ps claim they commonly work in excess of 40 hours per week. The California plaintiffs sought class certification. In opposition, Wells Fargo argued that individual issues predominated and that class treatment was not superior. In particular, Wells Fargo pointed to a number of exemptions under the FLSA (applicable through the UCL) and California labor law that would require individualized inquiries.