Terminations

My company is in the Mortgage Business. As of July 2010 all Mortgage Brokers have to be licensed in order to do Mortgages. This requires all Brokers to take a test and pass. In order to get a jump start on this process we have required all Brokers to have this completed by Dec 16, 2009 or their employment will be in jeopardy. Is it against any labor laws to do this since they have until July??

Thank you

Comments

  • 2 Comments sorted by Votes Date Added
  • If they have until July, why are you asking them to do this by Dec. 16th?

    I am not sure I would be comfortable terminating individuals for not having a license that is not required by law at that point.

    My concern would be that the individuals you might terminate would be from protected classes and that they would come back at you with a discrimination claim that you used the licensing requirement as a pretext to terminate them.

    Why not just wait until July and then you have the full weight of the law backing you up. Even then I would check to see if the new requirements include a "grace period" for brokers to become compliant.
  • It is not illegal in my state. However, as Paul states, you do run the risk of terming a disproportionate group of protected employees.

    It sounds like you are giving them plenty of notice but: Do they have to pass a test that is readily available to them? Is studying for it similar to most other licenses (take a class or use a study guide and then take a test), or does it take up to a year to really know enough to pass the test? These are questions you should consider when putting on your time limit.

    You might, instead, choose to limit their duties until they pass the test, with the understanding that anyone who hasn't passed by July will be termed. You could also add a minimum number of times they can fail the test. It all depends on what is required and how easy it is to get a license.
Sign In or Register to comment.