Free Response to Motion - District Court of Colorado - Colorado

Case 1:03-cv-02485-MSK-PAC

Document 345-58

Filed 02/16/2006

Page 1 of 2

EXHIBIT U

Case 1:03-cv-02485-MSK-PAC

Document 345-58

Filed 02/16/2006

Page 2 of 2

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HEARTLAND
HOME · FINANCE
Attn: Mindy Alvarado, Investigator U.S. Department of Labor Employment Standards Administration Wage and Hour Division 1999 Broadway, Suite 2445 Denver, CO 80201-6550

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Legal Department

1401 Branding Lane - Suite 300 Downers Grove, IL 60515-1171
Phone: 630:786-1055 Fax: 630:786-1045

August 20, 2003

Sent via mail & FAX 303/730-7036
Dear Ms. Alvarado:

In accordance with your request, I have calculated the whether any of our Loan Officers in our
Colorado office were not paid the minimum wage during any pay period for the period July 14,2001 to

July 5, 2003. My calculations are shown on the attached exhibit.

As I have explained on previous occasions, Heartland changed its compensation paid to Loan effective the first pay check in July 2002. Prior to that time, Loan Officers were paid commissions only on the 5th and 20th of each month. After that time, Loan Officers were paid $500 plus
Officers

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commissions on the 5lh and 20th of each month.

Accordingly, the minimum wage for the period July 14,2001 to June 20, 2002 were calculated as follows: days worked in the pay period X 8 hours X $5.15 = minimum wage for pay period. And the wages for the period June 21, 2002 to July 5,2003 were calculated as follows: days worked divided by work days in the pay period X $500 base pay, which results in an amount greater than the minimum wage. The resulting calculation of was compared against actual wages paid to the employee to determine any underpayment of minimum wage.
I have calculated that the loan officers during this two year period were paid less than the minimum wage in one or more pay periods in the amount of $45,708.73. Heartland is wiling to settle this matter by paying this amount. We wil agree to do this in order to put the matter behind us and to avoid litigation. This is not an admission that the class of employees designated as Loan Officers are nonexempt. On the contrary, Heartland believes that these employees are exempt.
I hope that this resolves the matter.
Very truly yours,

Thomas E. Beck

Vice President

Enclosures

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