Stearns Faces Overtime Action From Underwriters

Law360, New York (January 3, 2011, 5:30 PM EST) -- Stearns Lending Inc. is facing a proposed class action from underwriters who claim they regularly worked more than 40 hours a week without receiving overtime pay.

Santa Ana, Calif.-based Stearns, which does business as FPF Wholesale, had a nationwide practice of classifying underwriters as overtime-exempt, in violation of the Fair Labor Standards Act, according to a complaint lodged Thursday in the U.S. District Court for the Northern District of California.

Underwriters were subject to uniform policies and had no discretion to deviate, making them eligible for...
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