Lewis v. Huntington National Bank

789 F. Supp. 2d 863, 2011 U.S. Dist. LEXIS 55329, 2011 WL 1990567
CourtDistrict Court, S.D. Ohio
DecidedMay 23, 2011
Docket2:11-mj-00058
StatusPublished
Cited by79 cases

This text of 789 F. Supp. 2d 863 (Lewis v. Huntington National Bank) is published on Counsel Stack Legal Research, covering District Court, S.D. Ohio primary law. Counsel Stack provides free access to over 12 million legal documents including statutes, case law, regulations, and constitutions.

Bluebook
Lewis v. Huntington National Bank, 789 F. Supp. 2d 863, 2011 U.S. Dist. LEXIS 55329, 2011 WL 1990567 (S.D. Ohio 2011).

Opinion

OPINION AND ORDER

ALGENON L. MARBLEY, District Judge.

I. INTRODUCTION

This is an action under federal and state law for unpaid overtime wages and related relief. The matter is now before the Court on two motions: Plaintiffs’ Motion for Conditional Class Certification, Expedited Discovery, and Court-Supervised Notice to Potential Opt-in Plaintiffs Pursuant to 29 U.S.C. § 216(b); and Plaintiffs’ Emergency Motion for Protective Order, Cease and Desist Order, the Immediate Granting of Plaintiffs’ Motion for Court Supervised Notice, Sanctions, and Corrective Actions (Docs. 30 & 40). The Court heard oral argument on both of these motions, and the matters are now ripe for decision. For the reasons that follow, the Plaintiffs’ Motion for Conditional Class Certification is GRANTED in part, and the Plaintiffs’ Emergency Motion is GRANTED in part.

II. BACKGROUND

A. The Lawsuit

Plaintiffs are current or former Mortgage Loan Officers (“MLOs”) employed by Defendant The Huntington National Bank (“Huntington”) during the time period from January 2008 to the present. As MLOs, Plaintiffs sell Huntington’s residential mortgage products. Huntington pays the majority of its MLOs according to its Production Commission and Incentive Compensation Plan (“Plan”). Huntington pays those MLOs who work out of Huntington’s corporate offices under its Production Commission and Incentive Compensation Plus Salary Plan (“Salary Plan”). All MLOs are paid under one of these two plans. MLOs paid under the Plan receive only commission earned for loans closed, and MLOs paid under the Salary Plan receive a combination of commission and salary. Huntington pays its MLOs in bimonthly draws that it offsets against the employee’s commission earnings, which are paid only after a mortgage closes.

Plaintiffs challenge two of Huntington’s wage practices. First, although MLOs routinely work more than forty hours per week, 1 neither the Plan nor the Salary Plan provide for payment of overtime. Plaintiffs allege that, to their knowledge, Huntington never paid overtime to any of its MLOs. Second, Huntington deducted from the bi-monthly draws money that it failed to recoup from mortgage applicants and the cost of the MLO’s personal assistant. These deductions were made without the MLOs’ consent and were for losses for which the MLOs were not responsible.

Plaintiff Tom Lewis filed a three-count complaint on January 18, 2011 (Doc. 1). Plaintiffs then filed two amended complaints, the first adding Plaintiff Matthew Coulter and the second removing several named defendants and replacing them with Defendant Huntington (Docs. 15 & 26). 2 *866 The Second Amended Complaint, filed on March 11, 2011, includes three claims: (1) violations of the Fair Labor Standards Act of 1938 (“FLSA”), 29 U.S.C. §§ 201 et seg., on behalf of all MLOs employed by Huntington since January 18, 2008, denied overtime, and compensated based under the Plan or the Salary Plan (“Nationwide Class”) 3 ; (2) violations of the Ohio Minimum Fair Wage Standards Act (“Ohio Wage Act”), Ohio Rev.Code Ann. §§ 4111.01, 4111.03, & 4111.10, on behalf of all MLOs employed at Huntington’s Ohio branches since January 18, 2008, denied overtime, and compensated under the Plan or the Salary Plan (“Ohio Subclass”); and (3) violations of the Ohio Prompt Pay Act (“Ohio Pay Act”), Ohio Rev.Code Ann. § 4113.15, on behalf of the Ohio Subclass. The Plaintiffs seek class certification under Federal Rule of Civil Procedure 23 and 29 U.S.C. § 216(b), an injunction prohibiting Huntington from engaging in future FLSA or Ohio Wage Act violations, lost wages, liquidated damages, and litigation costs. Ten current and former MLOs have filed Notice of Consent to join the lawsuit (Docs. 2,12,17, 27, 38, & 43). 4

B. Payment of Back Wages

The FLSA requires covered employers to pay overtime wages to employees who work more than forty hours per week unless the employees fall into the category of exempted employees. 29 U.S.C. §§ 207(a)(1) & 213(a). One such category includes those employees working in a bona fide administrative capacity as defined by regulations issued by the Secretary of Labor. 29 U.S.C. § 213(a)(1). The DOL issued regulations in 2004 addressing the exemption status of employees in the financial services industry. See 29 C.F.R. § 541.203(b). In 2006, the DOL issued an Opinion Letter stating that the administrative exemption applies to mortgage loan officers who perform a set of specified duties. Then, in March 2010, the DOL issued its Administrator’s Interpretation 2010-1 concluding that the typical mortgage loan officer does not qualify for the administrative exemption.

Huntington Bank believed on the basis of the 2004 regulations and the 2006 Opinion Letter that the FLSA did not oblige it to pay overtime wages to its MLOs. 5 According to Annette M. Houck, Huntington’s Associate General Counsel, Huntington in fact created the MLO position in response to the 2004 regulations. In 2010, after the DOL issued its Administrator’s Interpretation 2010-1, Huntington decided to reclassify the MLO position as nonexempt. 6 Huntington required MLOs to record their hours beginning in February 2011, and in March 2011, Huntington began to identify MLOs’ overtime wages from March 25, 2010 through February 2011. In that regard, Huntington told current MLOs to collect any documentation they may have on their hours before meeting with the MLOs individually. Then, beginning in March 2011, Huntington’s human resources personnel and management staff met with each individually to decide how much overtime the MLO had worked.

*867 In April 2011, Huntington distributed “Acknowledgment of Back Wage Payment” forms to the MLOs who had participated in the back wage interviews. The Acknowledgment listed the number of overtime hours the MLO had worked and the resulting amount of the back wage payment.

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789 F. Supp. 2d 863, 2011 U.S. Dist. LEXIS 55329, 2011 WL 1990567, Counsel Stack Legal Research, https://law.counselstack.com/opinion/lewis-v-huntington-national-bank-ohsd-2011.