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Wells Fargo faces class action lawsuit on loan officer compensation rules

Letters will be mailed to potential plaintiffs shortly

United States District Court Judge Beth Labson Freeman granted class action status to a lawsuit where a loan officer is seeking backpay from Wells Fargo. (Ruling found here.)

Plaintiff James Kang worked as an home mortgage consultant in Wells Fargo's Palo Alto, California, branch from October 2000 through May 2015, with a short break in employment in 2011.

According to his lawsuit, LOs at Wells Fargo are paid advances on commissions at a rate of approximately $12 per hour, but those advances are "clawed back" from commissions earned. Kang said this violates labor laws. He also claims that Wells Fargo does not pay for pre-approved time off, as advertised, and doesn’t pay LOs to attend meetings and training seminars.

“Kang asserts claims on behalf of himself and other California-based HMCs for: (1) failure to pay minimum wages; (2) failure to pay overtime wages; (3) failure to pay vacation time; (4) failure to pay all wages owed every pay period; (5) failure to pay all wages due at separation; and (6) violation of California's Unfair Competition Act.”

Freeman found merit in the claim and granted the class action status to the lawsuit this week.

Letters to potential plaintiffs, LOs who worked in Wells Fargo California offices from late 2013 to 2015, will be mailed out shortly.

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