Judge finds UWM employment contract violated workers' rights

An employment contract United Wholesale Mortgage made employees sign in the past few years violates numerous labor laws, a judge with the National Labor Relations Board found. 

Administrative Law Judge Susannah Merritt ordered UWM to rescind unlawful portions of the contract and distribute a revised version to current and former workers in a Jan. 11 decision. The ruling, still pending final approval by the 4-member NLRB board, would apply to the lender's contracts in effect any time since Dec. 21, 2021.

Merritt agreed with federal prosecutors that large portions of the contract were "overly broad, ambiguous and/or discriminatory." Employees would read many of UWM's terms as unlawfully prohibiting them from discussing workplace conditions, disputes, wages, union efforts and more, the decision said. The judge also found language around arbitration, social media use and media contact in violation of labor laws.

Attorney Matthew Clark of Detroit-based Gregory, Moore, Brooks & Clark, P.C., filed the case after representing a former UWM underwriter in a discrimination claim. In a statement Friday, Clark said his side is pleased with the decision, and anticipates the Board to uphold the ruling.

"The decision should send a message to any company that bases its employment model on unlawfully curtailing the rights of its workers," wrote Clark in an email.

UWM has until Feb. 8 to file an exception, or an appeal, to the decision according to NLRB documents. The lender in a statement Friday said its employment agreement is in compliance with current law. 

"We disagree with the finding of the Administrative Law Judge who failed to follow existing law and plan to appeal this politically driven ruling," said UWM in a statement. 

UWM's reference to a "politically driven ruling" could refer to the board of three Democrats and one Republican. A fifth seat last held by a Republican has been vacant since the end of 2022. The board last year issued a new legal standard for evaluating workplace employment rules, overruling a prior standard they said chilled employees' rights.

Other rules deemed unlawful include restrictions on employees criticizing the company publicly and prohibitions on employees or unions using UWM's logo in distributed information about disputes. The findings are reminiscent of the lender's recent spat with a Facebook group, which used UWM's logo and featured discussion about the firm and competitor Rocket Cos. 

Judge Merritt still ruled in UWM's favor regarding a few terms, such a prohibition on employees disclosing mortgage customer and applicant information.

"Respondent here is focused on protecting the sensitive and private information of individuals applying for a mortgage," she wrote. "There is nothing in the rule that bars employees from contacting customers about labor disputes or other issues with terms and conditions of employment."

Should the NLRB ruling be confirmed, UWM must also post a 4-page appendix, digitally and around its office, for a 60-day period which states the NLRB found it in violation of labor law and reasserts workers' rights.