Ohio Employer To Pay $56k In Back Wages After Miscalculating Overtime For 234 Employees
The U.S. Department of Labor recently announced the recovery of $56,000 in back wages and liquidated damages for a class of 234 employees who were denied their rightful overtime wages. An investigation by the U.S. Department of Labor’s Wage and Hour Division found Liberty Hill Equity Partners LLC, a Cincinnati-based operator of Precision Vehicle Holdings, did not include non-discretionary bonuses in employees’ regular rate of pay when calculating overtime pay, a violation of the Fair Labor Standards Act (FLSA). The company provides logistics and terminal operations for newly manufactured vehicles.
Wage and Hour Division investigators identified the employer’s violation when reviewing payroll records for employees in Michigan and Indiana. They have since expanded the investigation to include all hourly nonexempt employees at 10 of the company’s locations in Michigan, Ohio, and Tennessee.
As a result, the company agreed to pay a total of $56,884 to their employees. $28,442 was for back wages while an equal amount of liquidation damages was assessed as a penalty and paid to 234 employees of the company.
Understanding wage and hour lawsuits
According to the U.S. Department of Labor’s Wage and Hour Division, inaccurate overtime calculations are among the most common violations identified in their investigations. Unless an employee belongs to a specific class of worker, such as an executive, that employee is entitled to overtime pay if they work more than 40 hours a week. The rate of overtime pay is based on the employee’s base salary. But how is that calculated? In this case, the company “forgot” to add the employees’ non-discretionary bonuses to their regular rate of pay when calculating overtime. This led to a situation where the employees were being shorted by the company when being paid overtime.
Federal overtime provisions are contained in the Fair Labor Standards Act (FLSA). Unless an employee is exempt, employees covered by the Act must receive overtime pay for any hours over 40 worked during a workweek at a rate not less than time and one-half their regular rate of pay. The Act does not place a limit on the number of hours an employee may work in a workweek. The FLSA does not require overtime pay for work on weekends, holidays, or regular days of rest, unless the individual went over 40 hours during the workweek.
The Act applies on a workweek basis, according to the Department of Labor. The workweek is defined as a regularly recurring period of 168 hours or seven consecutive 24-hour periods. It does not have to coincide with the calendar week but can begin on any day of the week and at any hour of the day. Different workweeks can be established for different employees. Averaging hours over two or more weeks is not permitted.
Talk to a Columbus, Ohio FLSA Wage and Hour Lawyer Today
Kohl & Cook represents the interests of employees who have been denied overtime in violation of the FLSA. We also represent the interests of employers who are facing FLSA lawsuits. Call our Columbus consumer lawyers today to schedule an appointment, and we can begin representing your interests right away.
Sources:
dol.gov/newsroom/releases/whd/whd20241115
dol.gov/agencies/whd/overtime
