Miscalculated Overtime Pay Lawsuit Investigation
Berger Montague is investigating potential class action lawsuits on behalf of employees who believe their employers miscalculated their overtime pay.
What is overtime pay?
According to the Fair Labor Standards Act (“FLSA”), most employees begin earning overtime once they’ve worked more than 40 hours in a week. Employees must be paid at least time and a half their regular pay rate for each hour of overtime they work. However, even with these FLSA guidelines, many employers still miscalculate their employees’ overtime pay.
What is included when calculating overtime pay?
Under the FLSA, employers must take the following factors into consideration when calculating overtime pay:
- Bonuses: The FLSA states that non-discretionary bonuses must be included in the regular rate of pay. Non-discretionary bonuses are bonuses given to employees to encourage them to work more steadily, rapidly, or efficiently and bonuses designed to encourage employees not to leave the company.
- Shift Differentials: Shift differentials, or varying pay rates, must also be included when calculating overtime pay. For example, if a nurse works one twelve-hour day shift for $10 per hour and two twelve-hour night shifts for $15 per hour, both pay rates must be taken into account when calculating their overtime pay rate.
- Different Jobs: If an employee works more than one job at a company at different pay rates, all pay rates must be included when calculating their overtime rate. For example, if an assistant works during the week for $20 per hour and also works on the weekends responding to online customer reviews for $15 per hour, both rates of pay have to be taken into account.
What is not included when calculating overtime pay?
The following factors do not need to be taken into consideration when calculating overtime rates:
- Money paid as gifts for the holidays, birthdays, or other special occasions
- Premium payments for overtime or holiday/weekend work
- Life insurance or health benefits
- Travel expenses, laundering costs, and supply/material purchases
- Sick or vacation pay
Previous miscalculated overtime settlements
Numerous miscalculated overtime class action lawsuits have settled over the past several years.
- Alliance Residential LLC: In August 2012, Alliance Residential LLC agreed to pay $1 million to settle class action claims that the company systematically miscalculated the overtime rate for hundreds of its workers.
- Universal Alloy Corp.: In May 2014, aircraft manufacturer Universal Alloy Corp. agreed to pay up to $4.75 million to resolve a class action lawsuit brought by workers who accused the company of miscalculating their overtime payments.
- Western Stone & Metal Corp.: In July 2015, jewel retailer Western Stone & Metal Corp. received approval to pay $650,000 to settle a class action with retail store workers alleging that the company miscalculated their overtime pay.
If you believe your employer has miscalculated your overtime pay, contact Berger Montague. You may be able to file a class action lawsuit.
Do I have to pay to consult with an attorney?
We are happy to talk with you about your potential claims free of charge. If we decide to represent you in a lawsuit, we will enter into a written contingent fee agreement with you. A contingent fee agreement means we only get paid if we win, and that we will receive our fees from the amount paid by the Defendant in the case.
Please contact us to discuss the details of your case. You may:
Related Information About Employment Law
- Wage & Hour Class Actions
- Discrimination Class Actions
- Worker Adjustment and Retraining Notification Act (“WARN Act”) Class Actions