The U.S. Department of Labor has recovered more than $1.4 million in back wages for 2,620 employees after an investigation found that a major electrical engineering and construction firm did not fully comply with federal overtime pay requirements.
FLSA Violated
According to the department’s Wage and Hour Division, the employer failed to include non-discretionary bonuses when calculating employees’ regular rate of pay. As a result, the overtime compensation—required under the Fair Labor Standards Act (FLSA)—was calculated at a lower rate than legally mandated.
Non-discretionary bonuses, such as those tied to performance, attendance, or other measurable criteria, must be factored into the overtime rate. Excluding them leads to underpayment during overtime hours, which violates federal labor law.
The company, which operates across several states including California, Arizona, and Ohio, cooperated with the investigation and has since corrected its payroll practices. All affected employees have been compensated for the wage shortfall.
” We make sure workers get the full amount of overtime pay they deserve, including all parts of their pay. “
Lilita Hom [Assistant Director , DoL]
Why This Matters for Workers
Federal law requires that covered employees receive time-and-a-half pay for hours worked beyond 40 in a workweek. The regular rate used to calculate this overtime must include not just hourly wages but also most types of bonuses. Failing to account for these earnings can lead to significant underpayment over time.
This case serves as a reminder to both employers and employees of the importance of accurate wage calculations and recordkeeping.
Additional Resources
Workers or employers seeking information about wage laws can contact the Department of Labor’s toll-free helpline. Assistance is available in over 200 languages.
To help workers track their hours and pay, the Department also offers a Timesheet App, available for both iOS and Android devices.
Adapted from a press release at the Department of Labour – U.S
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