Many jobs pay a “Day Rate”. The Day Rate pays a set amount no matter how many hours are worked. Even if you are paid a Day Rate, you are still owed overtime above the Day Rate when you work more than 40 hours in a single week .
Overtime pay is not paid as straight time. Overtime pay is calculated at 1 ½ times the employee’s regular rate of pay. Two recent cases found employers paying only straight time no matter how many hours are worked. Both employers were located in smaller towns but in different industries. Workers in small towns or rural areas are some times without a lot of job choices. These workers are particularly vulnerable to being cheated out of overtime.
When does a “manager” get overtime pay? Some managers sit in a back office and supervise, without getting their hands dirty. Other “managers” are working supervisors out on the floor with the same job duties as the workers they supervise. Who is exempt from overtime pay?
On May 10, 2019, a judge ordered Steak ‘n Shake to pay $7.7 million in back pay and liquidated damages for misclassifying store managers as exempt employees and failing to pay overtime.
Three restaurants with common managers are caught cheating at overtime. These violations were hidden by: (1) ignoring the total hours of employees working at multiple restaurants, (2) miscalculating the overtime rate for tipped employees, and (3) paying kitchen staff with only a flat salary no matter how many hours are worked.
This new case involves an employer in the window installation and repair business. The company failed to pay installation crews for travel time spent driving between job sites during the work day. It failed to pay window technicians for time spent loading and unloading materials. Further, bonuses paid to lead technicians should be used when calculating overtime rates.
Window Restoration Acquisition Corp. paid $45,257 in back wages and liquidated damages to seven employees for violating the overtime provisions of the Fair Labor Standards Act (FLSA).