Employee Seeks California Waiting Time Penalty Against Freedom Mortgage

An employee of Freedom Mortgage Corporation recently filed a California waiting time penalty lawsuit against the residential mortgage lender service company accusing them of failing to properly pay him overtime compensation.

Plaintiff Michael G., a San Diego resident, files the wage and hour lawsuit alleging a violation of the California waiting time penalty requirement, as well as violations of the Fair Labor Standards Act (FLSA).

According to the California waiting time penalty lawsuit, Michael says that the pay check stubs he received were inaccurate as they did not properly include overtime payments as required by the FLSA.

FLSA regulations set overtime pay at a rate not less than one and one-half times the regular rate of pay for hours worked more than forty hours per week. The lawsuit purports that the case is “directly related to whether the failure to pay overtime required by the FLSA was willful.”

Michael claims that he worked for Freedom Mortgage as a Loan Officer between April 7, 2014 and Oct. 13, 2015 at the company’s San Diego location. His employment required him to work as part of an inbound call center. While his pay was based off a 40-hour week base pay, which included bonuses, he alleges he worked approximately 61 hours per week.

Michael also alleges Freedom Mortgage still owes him unpaid wages that he never received following the conclusion of his employment He claims the failure to pay him his last paycheck on time puts Freedom Mortgage on the hook for a California waiting time penalty under provisions of the state’s labor code.

The California waiting time penalty lawsuit was filed on multiple counts including the failure to pay minimum wage in violation of California labor code, failure to pay overtime compensation under California industrial welfare commission orders and California labor code, failure to pay vacation pay upon termination, waiting time penalties, overtime pay and liquidated damages, and violation of California business and professions.

Michael demands a trial by jury.

Filing an FLSA Lawsuit

According to the Department of Labor (DOL), “[t]he FLSA establishes minimum wage, overtime pay, recordkeeping, and youth employment standards affecting employees in the private sector in Federal, State, and Local governments.”

The FLSA sets in place various labor rules regarding minimum wage, interstate commerce employment, limitations on child labor, and requirements for overtime pay. The United States law was enacted by Congress to protect employees against unfair work regulations and pay practices.

The FLSA sets minimum wage at $7.25 per hour. Additionally, any overtime pay must be paid at a rate of not less than one and one-half times the rate of regular pay after an excess of 40 hours per week have been worked.

Although many lawsuits pursue wage and hour actions against their former employers through federal law, lawsuits may also be filed through state law. The state of California does more to protect its employees by setting higher minimum wage standards, overtime pay, and mandated breaks.

With exception to the failure to pay overtime, other violations may also include: 1) misclassification of exempt employees, 2) off-the-clock work, 3) independent contractor misclassification, 4) unpaid on-duty meal and rest breaks, 5) improper deductions from salaried employees, 6) failure to pay minimum wage, 7) illegal tipping practices, 8) improper calculation of the regular rate.

The California Waiting Time Penalty Lawsuit is Case No. 3:18-cv-00447-W-NLS, in the U.S. District Court for the Southern District of California, San Diego Division.

Join a Free California Wage & Hour Class Action Lawsuit Investigation

If you were forced to work off the clock or without overtime pay within the past 3 years in California, you have rights – and you don’t have to take on the company alone.

Get a Free Case Evaluation Now