On March 24, 2010, the United States Department of Labor issued Interpretation No. 2010-1, triggering dramatic changes in employee classifications for many financial institutions. Through this interpretation, the status of mortgage loan officers was changed from “exempt” to “non-exempt.”

To comply with this new interpretation, banks must:

• Effectively track time and tasks for the now non-exempt mortgage loan officers
• Determine the regular rate of pay each week (based on commission payments)
• Retroactively calculate pay to balance past miscalculations

To simplify the process, reduce exposure and ensure that all mortgage loan officers are being paid completely and in full accordance with their new non-exempt status, WorkForce Software developed the “Financial Services Compliance Pack.” Through this new offering, we offer banks and other institutions a version of EmpCenter that is pre-configured to address
Interpretation 2010-1 and other regulatory concerns unique to the financial services industry, including:

• Complete ability to track and verify work time
  WorkForce Software’s EmpCenter is available with a variety of data collection devices and methodologies – from web-based clocks to smartphone applications – designed to simplify the process of capturing time-based and task-based information for your entire workforce. EmpCenter can also interface with other systems – such as phone switches – to validate reported work time and activities.
• Perform pay calculations & retroactive adjustments
  The Financial Services Compliance Pack calculates all overtime, including commissions and other non-discretionary pay, and supports applicable state-specific mandates, even the highly-complex regulations such as those governing workers in California. It also supports calculations for multiple pay structures such as hourly, fixed salary (regardless of hours worked), draw against commissions, or other methods that may be specific to your organization.
• Perform retroactive pay adjustments due to commissions
  The solution supports multiple methods of performing retroactive pay adjustments according to your institution's unique requirements, such as distributing commissions among the weeks over which they were earned, and calculating any adjustments to overtime or “over standard weekly hours” pay.
• Ensure retroactive compliance
  EmpCenter automatically calculates any pay adjustments that are necessary to bring your institution retroactively into compliance for any period of time you define prior to the system’s deployment. This includes audit trails and reports that empower you to provide proof of compliance.

Available in a variety of implementation options – from pure SaaS to self-hosted – the Financial Services Compliance Pack empowers you to meet your organization’s workforce management needs today and tomorrow. As your organization continues to grow, and as the regulatory landscape continues to shift, your WorkForce Software solution delivers the ability to evolve as well.

For more information, click here to visit the Interpretation 2010 section of our FLSA page.