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Loan originators at three local financial institutions sued their employers last week, alleging that they were illegally denied overtime pay. |
In separate lawsuits against the institutions, the plaintiffs said they regularly worked more than 40 hours a week and were required to arrive early and work late. They said they frequently worked on weekends and took work home.
The complaints were filed in federal court in Kansas City, Kan. Named as defendants were Bank of Blue Valley, National Bank of Kansas
City and First Horizon Home Loan Corp., one of the nation's largest mortgage lenders.
Linda Bacon, a spokeswoman for First Horizon, said that the loan originators were exempt under the old overtime pay rules but were being.
paid overtime under new national regulations that took effect in August.
"Prior to that date, you could meet the exemption for inside sales positions through the administrative or other exemptions," Bacon said.
"Since then, the new law has been very explicit to say that inside sales are nonexempt."
Stephen Matthews, president and chief executive of National Bank of Kansas City, said he had not seen the lawsuit and declined to comment.
Officials at Bank of Blue Valley did not return a call seeking comment.
Sixteen plaintiffs sued Overland Park-based Bank of Blue Valley. Four sued Leawood-based National Bank of Kansas City, formerly Horizon National Bank. Seven sued Irving, Texas-based First Horizon, which has several branches in the Kansas City area.
"My clients were on commission and were told they were making too much money," said attorney George A. Hanson, who represents the plaintiffs in all three actions. "That's not the test, of course, for determining whether you get overtime."
The lawsuit against National Bank of Kansas City says the bank's loan originators were paid a base salary of $1,250 per month plus commissions. The lawsuit against Bank of Blue Valley says originators there were paid $1,250 per month plus commissions until January 2002, when they were placed on a commission-only basis. The lawsuit against First Horizon says originators there received only commissions.
Hanson said his clients made between $50,000 and $150,000 a year in the past three years, the period covered by the lawsuits.
By DAN MARGOLIES
Posted on Wed, Oct. 20, 2004
© 2004 Kansas City Star and wire service sources. All Rights Reserved.
http://www.kansascity.com

