A national collective action was filed in Florida on 2/2/2004 against lending giant, Oak Street Mortgage, LLC. The action was brought on behalf of all current and former loan officers, who since February 2001, were not paid proper statutory overtime for all hours worked beyond 40 per week. The action was brought under the federal Fair Labor Standards Act and seeks back pay, statutory and liquidated damages as well as declaratory and injunctive relief. As a collective action, all potential claimants are required to "opt-in" to the action in order to be considered part of the class. On 5/18/2004, the Magistrate Judge recommended conditionally certifying a class of all loan officers employed by Oak Street at one of its branch offices located in Greenville, South Carolina, Atlanta, Georgia, St. Petersburg, Florida or Ocala, Florida.
According to employees, Oak Street Mortgage, has engaged in a willful and intentional course of action to defraud them of proper overtime compensation. The employees claim that as a matter of policy, they are required to work in excess of 40 hours per week by Oak Street. However, according to employees, the company has no provisions in place to properly compensate employees for hours worked in excess of 40 per week. The employees claim that Oak Street fails to keep accurate records of their hours and this further assists the company in preventing employees from collecting overtime. Under the Fair Labor Standards Act, all hourly "non-exempt" employees are entitled to a minimum of time and a half for all hours worked in excess of 40 per week. "Non-exempt" employees are generally those that work on an hourly basis and do not have managerial or executive responsibility. The employees, who were loan officers paid on an hourly basis, claim that they are "non-exempt" and therefore entitled to receive overtime compensation for all hours worked beyond 40 per week. The employees also claim that because Oak Street's refusal to pay overtime was willful and intentional, they are entitled to an equal amount of liquidated damages.