Allied Faces Class Action Over Pay Practices

Law360, New York (April 27, 2011, 5:04 PM EDT) -- An ex-Allied Home Mortgage Capital Corp. branch manager slapped the Texas-based mortgage broker with a proposed class action Tuesday for allegedly violating employment agreements by surreptitiously withholding millions of dollars from paychecks through undisclosed fees.

Steve Stathas claims in a suit filed in the District Court of Harris County, Texas, that Allied set up a sham payroll company, called 1SourceHR Corp., that paid itself a 3 percent fee for administering Allied's payroll and employee benefits. Allied allegedly disguised the theft as part of other legitimate deductions....
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