A few weeks ago I wrote about a case that had recently been filed against TD Bank for its loan underwriters. That lawsuit sought collective action status for a class of loan underwriters at TD Bank locations around the country. The law that the plaintiffs invoked is called the Fair Labor Standards Act. It requires that employers pay one and a half times an employee’s regular rate when they work past 40 hours in a week. The lawsuit follows a ruling from the Second Circuit Court of Appeals, called Davis v. JP Morgan, in which that court ruled that mortgage loan underwriters get overtime pay and are not exempt.
A recent review of the docket shows that TD Bank has agreed to mediation. Mediation is an informal process where the parties attempt to settle the case. It is unclear from the court docket whether the mediation will be on behalf of the named plaintiffs only or whether it is for the entire class. In the meantime, the case was dismissed, but it looks like an agreement has been reached to toll the statute of limitations. This probably means that those who would be members of the class will not be affected by the dismissal and their claims won’t expire by the passage of time. Since we haven’t seen the actual agreement, it is impossible to be sure, however, and mortgage underwriters at TD Bank should take whatever steps that they believe are appropriate to protect their rights.
We wish the plaintiffs and their lawyers well. This is an important case for mortgage loan underwriters and their fight to be paid overtime wages that they deserve.