Three former mortgage brokers of Washington Mutual Inc., the largest U.S. savings and loan, have sued the company for allegedly shortchanging them out of overtime and paying them less than the federal minimum wage, media accounts said Tuesday.

The lawsuit, filed on Monday in U.S. District Court in Brooklyn, New York, seeks class action status, according to reports.

“Because we have not yet seen the complaint, it would be inappropriate for us to comment on the specifics. However, we believe our compensation practices are fair and ethical and we will vigorously defend our company against the allegations made,” said Alan Gulick, spokesperson for Washington Mutual.

Jack Raisner, a lawyer with Outten Golden LLP, which represents the plaintiffs, told Reuters that Seattle-based Washington Mutual deprived at least hundreds of brokers of their proper pay.

The lawsuit accuses the thrift of requiring home loan consultants, as its mortgage brokers are known, to work more than 40 hours per week and failing to pay them for the extra hours when approval was not granted for loans they handled, media accounts said.

According to the lawsuit, forcing the employees to work long hours without paying overtime regularly drove hourly pay below the federal minimum wage of $5.15 an hour, accounts said.

The plaintiffs are seeking back pay with interest, attorneys’ fees and an injunction, according to a filed copy of the lawsuit, reports said.

Show Comments Hide Comments


Sign up for Inman’s Morning Headlines
What you need to know to start your day with all the latest industry developments
By submitting your email address, you agree to receive marketing emails from Inman.
Thank you for subscribing to Morning Headlines.
Back to top
Only 3 days left to register for Inman Connect Las Vegas before prices go up! Don't miss the premier event for real estate pros.Register Now ×
Limited Time Offer: Get 1 year of Inman Select for $199SUBSCRIBE×
Log in
If you created your account with Google or Facebook
Don't have an account?
Forgot your password?
No Problem

Simply enter the email address you used to create your account and click "Reset Password". You will receive additional instructions via email.

Forgot your username? If so please contact customer support at (510) 658-9252

Password Reset Confirmation

Password Reset Instructions have been sent to

Subscribe to The Weekender
Get the week's leading headlines delivered straight to your inbox.
Top headlines from around the real estate industry. Breaking news as it happens.
15 stories covering tech, special reports, video and opinion.
Unique features from hacker profiles to portal watch and video interviews.
Unique features from hacker profiles to portal watch and video interviews.
It looks like you’re already a Select Member!
To subscribe to exclusive newsletters, visit your email preferences in the account settings.
Up-to-the-minute news and interviews in your inbox, ticket discounts for Inman events and more
1-Step CheckoutPay with a credit card
By continuing, you agree to Inman’s Terms of Use and Privacy Policy.

You will be charged . Your subscription will automatically renew for on . For more details on our payment terms and how to cancel, click here.

Interested in a group subscription?
Finish setting up your subscription