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.
Crown Linen LLC – based in Orlando, Florida – will pay $60,863 in back wages to 15 employees for violations of the overtime and record keeping provisions of the Fair Labor Standards Act (FLSA).
Misclassified Managers Denied Overtime.
Crown Linen, LLC. offers commercial laundry services to hotel clients. The employer incorrectly considered two groups of employees as exempt from the overtime requirements as managers under the FLSA. This misclassification of the jobs as overtime exempt resulted in the employer paying flat weekly salaries without regard to the number of hours worked. This practice resulted in violations when these employees worked more than 40 hours per week and were not paid overtime. The employer also failed to maintain required records of the number of hours employees worked.
Employees not paid overtime because they are miss-classified as “managers” may be owed substantial amounts of overtime.