UWM faces NLRB hearing over worker contracts complaint

Lender accused of overly broad, unlawful rules

United Wholesale Mortgage LLC is facing allegations of violating workers’ rights by imposing “unlawful” employment contracts, according to lings with the National Labor Relations Board.

Former employee Christopher Dennis accuses the Pontiac-based mortgage lender of maintaining employment agreements with “overly broad or otherwise unlawful rules and de nitions” and “interfering with, restraining, and coercing employees in the exercise of the rights guaranteed in” the National Labor Relations Act.

Dennis, through his attorney Matthew Clark of Detroit-based Gregory, Moore, Brooks & Clark PC, led the charges last June.

After Clark led the charges, Region 7 of the NLRB investigated and issued a complaint against UWM, the attorney said in an email to Crain’s. A hearing on the case is scheduled for July 25 in front of an NLRB administrative law judge.

“Both Region 7 and Christopher (through me) have the ability to jointly present the case at the NLRB trial,” Clark said in the email. e attorney was unavailable for a phone interview. “UWM does not comment on legal matters that are currently pending,” company spokeswoman Nicole Roberts said in an email. e mortgage lender has a history of workplace complaints. It was targeted with at least 189 employee safety complaints to the Michigan Occupational Safety and Health Administration amid the COVID-19 pandemic. Developments in the NLRB case also come on the heels of a scathing report by Bloomberg last month that referenced complaints of racial disparities and sexual harassment at the company. to be overly broad or unlawful, including clauses related to the return of company property and information; media inquiries; social media; nondisparagement and arbitration.

Dennis is a former UWM underwriter who also led a separate discrimination complaint against the company because it refused to allow him to work from home to accommodate his condition of su ering migraines, according to a report from the National Mortgage News, which rst reported the labor complaint Wednesday.

UWM is seeking to settle the NLRB case before the July hearing, the report said.

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e arbitration clause states that by signing the agreement, the employee “acknowledges that he or she is giving up the right to a trial in the court of law as to any discrimination or other statutory claims.” tors, o cers, owners, or employees, with or through any written or oral statement or image (including, but not limited to, any statements made via websites, blogs, postings to the internet, or emails and whether or not they are made anonymously or through the use of a pseudonym).” e NLRB did not return a request for comment Wednesday. e NLRB complaint cites some employee contract sections it claims e nondisparagement clause states: “Employee will not (nor will Employee cause or cooperate with others to) publicly criticize, ridicule, disparage or defame the Company or its products, services, policies, direc-

In response to the complaint submitted to the board, UWM denied the merit of the charges, according to a copy of the letter led on behalf of the company through DeAndre’ Harris, attorney with Grand Rapid-based Warner Norcross + Judd.

“UWM admits that its employment agreement contained the above-referenced provisions at all material times, but denies that the provisions are overbroad or otherwise unlawful under the National Labor Relations Act,” the response said.

Harris could not be immediately reached for comment.

UWM, like its crosstown rival Rocket Mortgage, has strugglednancially in recent months, especially compared to the pandemic boom times for the mortgage industry. UWM reported a loss of $138.6 million in the rst quarter after an overall volume decline of 42.5% from a year ago.

Contact: knagl@crain.com; (313) 446-0337; @kurt_nagl