California law has specific requirements regarding the payment of overtime to employees. An employer’s failure to pay overtime—or failure to pay the correct overtime rate—can result in a litany of unintended Labor Code violations, which, in turn, can lead to enormous liability. Therefore, it is critical that employers understand when overtime is due and how to calculate the overtime rate of pay.
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In California, the general overtime requirement is that a nonexempt employee shall receive a premium of at least:
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Department of Labor Continues to Loosen Restrictions on Calculating Overtime (US) - Lexology
Ordinarily, to calculate overtime, an employer determines a non-exempt employee’s regular rate of pay by dividing their total remuneration earned in the workweek by the number of hours worked, and then pays the regular rate plus an additional 50% of the regular rate for any overtime hours worked by the non-exempt employee.
During the current pandemic conditions, many employers have begun to offer hazard pay, shift differentials, or incentive bonuses to encourage regular attendance, promote staggered work hours and in turn social distancing, and reward employees working through difficult circumstances.
DOL Adopts Two Significant Changes to "Modernize" Overtime - Lexology
We all know that retail has been hit hard by the pandemic. When retail employees paid on a commission basis do go back to work, fewer of them will qualify for overtime, thanks to a Department of Labor (DOL) rule promulgated on Monday, May 18, 2020.
Prior to the new rule, the DOL’s old interpretive rules set forth lists of businesses that either did not not qualify, or only possibly qualified, as “retail or service establishments.” The first list identified businesses that were categorically excluded from the exemption because they had “no retail concept,” which included real estate companies, construction contractors, and our personal favorite, tree removal firms.
Trump Judge Tries to Dismiss Employees' Overtime Lawsuit: Confirmed Judges, Confirmed Fears
Trump Second Circuit judge Richard Sullivan tried to prevent more than 500 employees of Chipotle from suing collectively under the Fair Labor Standards Act (FLSA) to recover overtime pay that they contend the chain improperly denied them. The Second Circuit majority, including a judge nominated by George W. Bush, rejected that view and ruled that the employees could proceed as a group under the FLSA in its April 2020 decision in Scott v. Chipotle Mexican Grill, Inc.
Chipotle has claimed that employees working at the "Apprentice" level are sometimes promoted to managerial positions, and therefore has classified Apprentices as workers not entitled to receive overtime pay, despite their long hours working overtime. Maxcimo Scott, who worked as a Chipotle Apprentice, and six other present and former Apprentices sued, claiming that Chipotle had misclassified them and improperly deprived them of overtime pay.
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Amazon to end wage increases, double overtime pay at end of May; will Jeff Bezos become
Amazon workers have been getting paid extra during the coronavirus pandemic, but the temporary wage increases and double overtime pay will be coming to an end.
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Warehouse workers and drivers have been getting an additional $2 an hour as well as double hourly wages for overtime work.
The temporary pay increase was announced on March 16, set to end in April. It was extended to May 16 and now finally May 31, Recode reported .
Kroger will not seek repayment from employees it overpaid - Chicago Tribune
Mariano's parent company, Kroger, will not seek repayment from employees the grocery chain overpaid for time they took off to self-quarantine.
When the coronavirus pandemic started spreading through the U.S., Kroger began offering paid time off to employees who needed to self-isolate, were experiencing COVID-19 symptoms or who needed time off for another virus-related reason.
Dozens of employees at Chicago-area Mariano's stores who had taken the paid time off received letters recently from Kroger notifying them that they had been overpaid and would need to return the money, said Zach Koutsky, spokesman for the United Food and Commercial Workers Union Local 881. The employees should have received their hourly rate, but mistakenly received overtime pay, he said.
Salary Add-Ons Do Not Bar Fluctuating Workweek Overtime, U.S. DOL Rules - Lexology
The fluctuating workweek (FWW) method of computing overtime is an alternative method of computing overtime for non-exempt salaried employees. If there is a clear and mutual understanding that the salary covers straight time pay for all hours worked, whether few or many, the additional overtime compensation is one-half the regular rate. For instance, if an employee’s salary is $800 per week, and the employee works 50 hours, the regular rate is $16 per hour ($800/50).
The revised regulation was prompted primarily by court decisions holding that additions to the fixed salary, such as bonuses and shift differential, precluded the FFW method. The new regulation rejects those decisions, “Payment of any bonuses, premium payments, commissions, hazard pay and additional pay of any kind is compatible with the fluctuating workweek method of overtime payment.” The additional payments must, however, be included in the calculation of the regular rate.
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