Calculating an employee’s regular rate of pay is a nuanced and constantly developing area of the law that requires employers to vigilantly keep a watchful eye on the latest statutory developments, as well as newly published case law.
Simply put, when a non-exempt employee is entitled to overtime compensation, the hourly rate of pay on which overtime calculations are based is known as the employee's “regular rate of pay.” If an employer improperly calculates the regular rate of pay, the employer will also calculate overtime pay incorrectly, thus exposing itself to potential liability for the nonpayment of wages, as well as derivative claims for inaccurate wage statements and penalties (among other claims).
If an employee’s hourly rate of pay includes only hourly wages during the pay period, then determining that employee’s regulate rate of pay for purposes of calculating overtime is simple. However, when the calculation to determine an employee’s regular rate of pay includes other forms of compensation, such as bonuses paid for working a particular less-desirable shift, productivity bonuses, or a bonus related to the quality of an employee’s work, an employee’s regular rate of pay can deviate from that employee’s straight-time rate.
Failure to properly calculate the regular rate of pay can set the stage for a company getting sued on a class or representative basis where potential damages and attorneys’ fees can quickly (and easily) reach six or seven (or more) figure...
Quince is looking to sidestep a proposed class action lawsuit accusing it of “defraud[ing] customers as to the value of thousands of … products sold on its website.” In a newly filed motion to dis...