Former Employees Sue New Century

Overtime pay at issue
By SAM GARCIA
4/4/2003

Two former Louisiana loan officers are suing New Century Financial Corp. for unpaid overtime.

Kimberly A. England and Gregory M. Foshee, both former telephone loan officers for New Century's Baton Rouge office, filed a lawsuit in the state's district court Tuesday alleging the company routinely required them to work overtime without pay, the Associated Press (AP) reported. The suit could reportedly be certified as a class action if the judge approves it.

In a brief statement to MortgageDaily.com, a New Century spokeswoman said there are a total of 7 former and current loan officers in Louisiana.

Loan officers at the Irvine, California specialty lender -- who were allegedly paid a base salary plus commissions on closed loans -- had been classified under federal law by the company as workers entitled to overtime pay, AP reported. However, supervisors allegedly insisted that time sheets be filled out to reflect a 40-hour work week, no matter how much time was worked.

"Our legal counsel is investigating the claim," the company's spokeswoman said.

New Century reported 2002 production of $14.2 billion.

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