Even the most well-intentioned employer who wants to comply with the FLSA will have trouble, as there are many gray, nuanced provisions and regulations in this law, especially on overtime computation. One of these is the requirement to include non-discretionary bonuses in the overtime calculation of non-exempt workers. That may now be changing as the
Attempt at “Blended” Overtime Defense Fails in FLSA Case in Fourth Circuit
An interesting decision just issued involving an employer who attempted to use a blended compensation system to pay employees overtime. A federal appellate court ruled, however, that this system did not comply with the Fair Labor Standards Act and allowed a million dollar judgment obtained by the USDOL to stand. The case is entitled U.S.
Sales Representatives Get Certification On Failure To Include Commissions In Overtime Class Action: A Cautionary Tale
It is vital for employers to remember that when non-exempt employees earn commissions, those commissions must be included in the computation of their regular rate when they work overtime. The inclusion of the commissions bumps up the regular rate a little but if this is not done, then these small amounts of money can quickly
What The New DOL Rulings/Regulations May Bring?
I have blogged about some USDOL initiatives of late and see they are picking up some momentum with further developments coming down the line. The agency is going to revise the manner in which overtime is calculated (maybe to the employer’s benefit) and speak more on the issue (thorny as it is) of inclusion of
Regulatory Agenda of Trump Administration Indicates Significant DOL Changes
The Trump Administration has issued its regulatory agenda, which is a semi-annual statement of the short- and long-term policy plans of government agencies. The DOL is at the forefront of these changes to come. The agency stated that it will revise the definition of “regular rate,” the number that forms the basis for overtime computations
Renaissance of USDOL Opinion Letters Is An Encouraging Development
FLSA Lawsuit Against Quest Diagnostics Alleges Failure To Include Non-Discretionary Bonuses In Regular Rate
When employers calculate overtime, and what the regular rate will be for the overtime, they must ensure that they include all “extra” payments, like commissions, or earned or promised bonuses, when they pay the overtime. Failure to do so is a violation of the Fair Labor Standards Act. To prove the point (hopefully not!), Quest
When Do Bonuses Get Included In Non-Exempts’ Regular Rate for OT Calculations?
A little known aspect of the FLSA is the need for an employer to include non-discretionary bonuses when calculating the regular rate for purposes of overtime calculation. In a collective action, the employees of Publix Super Markets have charged that the Company has not done that, particularly in the face of an alleged admission by
The U.S. Department of Labor Has A “Beef” With Arby’s Calculation of Overtime Pay
Last week, the U.S. Department of Labor (“DOL”) announced that United States Beef Corp., doing business as Arby’s, has agreed to pay back wages in the amount of $55,838 based on their failure to properly calculate overtime. This agreement came following an investigation by the DOL, which found that 255 Arby’s restaurants had failed