For the better part of the last decade, lenders have been struggling (often in vain) to comply with the Fair Labor Standards Act. However, curing these problems has often gone hand-in-hand with acknowledging significant liabilities and the risk that well-intentioned changes could spark litigation.
Now, the U.S. Department of Labor has announced the PAID (Payroll Audit Independent Determination) program: a six-month pilot program where employers can correct past wrongs without having to pay liquidated damages and attorneys’ fees. In essence, the PAID program allows employers to address and discharge existing liabilities without the threat of litigation or liquidated damages.
For lenders, PAID may provide a respite from the swarm of wage-hour litigation that has enveloped the industry. Because the FLSA provides plaintiffs lawyers easy paths toward conditional certification and notice, liquidated damages and attorneys’ fees, as well as employee-friendly presumptions, lenders facing these cases are often in an unfavorable position from the inception. As such, millions have been recovered by loan officers against lenders under the FLSA for minimum wage and overtime.
Click here to read the full article on National Mortgage News
Questions on this topic or other lender issues? Contact Ari Karen at firstname.lastname@example.org or
ABOUT ARI KAREN
Ari Karen is an experienced litigator and speaker who has focused his practice in representing financial institutions in both government investigations and litigation before state and federal trial and appellate courts nationwide.
Mr. Karen’s practice is diverse, representing clients on matters concerning banking regulations, Dodd Frank financial reform laws, contractual disputes, employment and labor statutes, wage-hour class actions, employment discrimination and fair lending matters, whistleblower complaints and non-competition claims, among others.
ABOUT OFFIT KURMAN
Offit Kurman is one of the fastest-growing, full-service law firms in the Mid-Atlantic region. With over 150 attorneys offering a comprehensive range of services in virtually every legal category, the firm is well positioned to meet the needs of dynamic businesses and the people who own and operate them. Our eleven offices serve individual and corporate clients in the Virginia, Washington, DC, Maryland, Delaware, Pennsylvania, New Jersey, and New York City regions. At Offit Kurman, we are our clients’ most trusted legal advisors, professionals who help maximize and protect business value and personal wealth. In every interaction, we consistently maintain our clients’ confidence by remaining focused on furthering their objectives and achieving their goals in an efficient manner. Trust, knowledge, confidence—in a partner, that’s perfect.
You can connect with Offit Kurman via our Blog, Facebook, Twitter, Google+, YouTube, and LinkedIn pages. You can also sign up to receive Law Matters, Offit Kurman’s monthly newsletter covering a diverse selection of legal and corporate thought leadership content.
MARYLAND | PENNSYLVANIA | VIRGINIA| NEW JERSEY | NEW YORK | DELAWARE | WASHINGTON, DC