Loan officers who were classified as non-exempt under the Fair Labor Standards Act, and were paid minimum wage and guaranteed overtime which was treated as a draw and offset from future commissions, may be entitled to additional compensation rules a federal district court in Minnesota. Under the FLSA, retail or service establishments are exempt from overtime provisions if the regular rate of pay for the employee is more than one-and-a-half times the applicable minimum hourly rate, and more than half of the employee’s compensation for at least one month represents commissions on goods or services. The court determined that the mortgage broker was part of the financial industry, and did not qualify for the retail or service exemption. Furthermore, the pay plan violated the FLSA since the rate paid to the loan officers fluctuated with the commissions earned. “Loan officers receive regular commissions; they receive a percentage of their sales,” the court said. “Thus, the alleged regular rate of pay of minimum wage is not a ‘regular’ rate because the commissions earned are part of the regular rate.” Saunders v. Ace Mortgage Funding, Inc.