FLSA regulations say 40 hours worked is 40 hours paid.

by on April 1, 2009 · 0 Comment POSTED IN: HR Info Center

FLSA regulations for overtime pay and how it is calculated

FLSA Regulations aggregate time worked in one week

If a non-exempt employee works two different jobs for a single employer, the employer must add up the hours to determine whether overtime is payable. That principle was underlined by the outcome of a case from Omaha, NE.

A restaurant chain allowed employees to work at more than one location, but failed to track their hours across the chain. DOL won $90,055 in unpaid overtime and damages for 25 workers. A federal appeals court has now upheld the damages, finding the employer should have known workers’ aggregate weekly hours worked were exceeding 40.

Cite: Chao v. Barbeque Ventures.

“Bonus” was no bonus under FLSA regulations

While you may refer to overtime hours by any name you want– “golden time,” “bonus time,” “combat duty,” you name it – you must pay one and one half times people’s hourly wage when they work more than 40 hours in any work week per FLSA regulations.

A DOL investigation found security guards were awarded “bonus pay” in exchange for working beyond 40 hours. That’s all well and good. Problem was, the bonus pay was about the same as their regular hourly pay.

The employer was ordered to pay $103,000 in back wages to 67 employees. It also agreed to maintain accurate pay records.

Cite: DOL v. Defense Systems Group.

Improper deductions sink employer

When a group of low-wage temp workers got their pay, one or two suspected the employer had not properly reimbursed them for meals or transportation. They called the DOL.

Wage-and-hour inspectors dug up several of the employer’s further improprieties, including inaccurate timekeeping practices and violations of FLSA regulations

The employer agreed to pay 472 workers $200,000 in back wages.

Cite: DOL v. Empire Group.

Denying overtime pay violates FLSA regulations

Employers who don’t ensure that low-wage employees receive all the overtime pay they deserve, should be aware that the federal government is.

A New York garment manufacturer failed to pay overtime per FLSA regulations to 175 of its employees. When 13 of them complained, they were terminated in retaliation.

That’s when the DOL’s Wage and Hour Division stepped in. After investigating, the feds filed a Fair Labor Standards Act lawsuit

The employer capitulated and offered to settle just before the case went to court.

In reaching a settlement, the manufacturer agreed to pay $400,000 in back wages plus $10,000 and job reinstatement for the 13 whose complaints triggered the investigation.

Cite: DOL v. Danmar Finishing Corp.

FLSA regulations say the work day is done when you clock out

When employees punch out, their work day should be done. A Southern California restaurant didn’t observe this simple rule, and ended up owing $306,500 in back overtime.

DOL said the restaurant would have workers clock out and keep working – up to 12 hours a day, six days a week. They were paid straight time, in cash.

Cite: DOL v. 888 Seafood Restaurant

FLSA regulations don’t exempt slow workers

No matter how you slice it, most employees making less than $455 a week can’t be considered exempt for overtime purposes.

That provision of DOL’s new Overtime Security rules came into focus in its case against an Ohio chain of nursing homes, which had to pay $92,987 in back wages to 393 employees. Some of the employees were misclassified as exempt, although they made less than $455 a week.

The only jobs the $455 minimum doesn’t apply to are outside sales, teaching, and the practice of law or medicine.

Cite: DOL v. Royal Manor Management.

Falsified records make for a major FLSA compliance violation

The owner of a clothing chain in southern California falsified records to avoid paying overtime to low-wage workers, and now must fork over $158,000.

DOL said the affected employees were 161 sales clerks, cashiers and stockers in 12 stores in the Los Angeles area. Part of the payment owed by the employer is back wages, and part is penalties.

Cite: DOL v. Ken Mart.

Two ‘free’ weeks of work violate FLSA regulations and cost $270,000

A Minnesota-based employer would withhold workers’ pay for their first two weeks on the job. DOL said that wasn’t right.

The employer, which operated a janitorial service, was ordered to pay $135,000 in back wages and FLSA-mandated overtime, and another $135,000 in damages.

Cite: DOL v. General Maintenance & Floor Service

Incomplete overtime pay added up to $72K

Incentive pay is part of base pay for purposes of calculating overtime under FLSA regulations, DOL reminds in a citation against a Utah drywall contractor.

The firm paid its employees extra for out-of-town work, but didn’t figure in the premium when paying overtime.

DOL investigated, and the contractor had to pay $72,000 in back overtime to 77 workers.

Cite: DOL v. Classic Drywall Systems

Leave a Reply


Request a Free Demo

We'd love to show you how this industry-leading training system can help you develop your team. Please fill out this quick form or give us a call at 877-792-2172 to schedule your one-on-one demo with a Rapid Learning Specialist.