Improper Calculation of Regular Rate of Pay For Overtime May Violate FLSA

Pursuant to the Fair Labor Standards Act (FLSA) non-exempt workers are entitled to be paid overtime compensation at a rate of one and one-half times their regular rate of pay for all hours worked over 40 in any one work week. Employers can get into trouble and may violate the FLSA if they fail to correctly calculate this amount. This means that employees may be entitled to back pay and damages.

Determining what is an employee’s regular rate of pay can be tricky. Your regular rate of pay is not just your hourly wage. Instead, it includes “all remuneration for employment paid to, or on behalf of, the employee,” except for certain payments excluded by statute.

This includes wages or salary, and also non-cash wages such as lodging, goods, boarding, non-overtime premium payments, non-discretionary bonuses, commissions and other incentive payments. Not included in the regular rate of pay are expenses incurred on the employer’s behalf such as premium payments for overtime work and discretionary bonuses.

Further, state laws may also impact what is included in the regular rate.

If you have questions concerning overtime pay, or believe that you have not received all the overtime compensation you are rightfully entitled to, please contact the dedicated Atlanta wage and hour lawyers at Buckley Bala Wilson Mew LLP for an immediate case evaluation.