San Francisco-based First Republic Bank will pay $1,009,644 in overtime back wages to 392 employees in California, Connecticut, Massachusetts, New York and Oregon. A U.S. Department of Labor Wage and Hour Division Investigation revealed the bank incorrectly classified workers as exempt from the Fair Labor Standards Act ().
On that basis, investigators said, the bank wrongly refused to pay overtime to employees who worked more than 40 hours in a week.
The investigation also found that First Republic did not include bonuses as part of employees’ base pay when calculating overtime pay for nonexempt personnel. The bank will have to bring its pay and record-keeping practices into compliance as part of the settlement.
Note: Just because a position requires a college degree or advanced training doesn’t mean it’s a professional position under the FLSA. Although each situation is evaluated on its own merits, someone must generally be able to supervise, hire and fire underlings to be classified as a manager.
Like what you've read? ...Republish it and share great business tips!
Attention: Readers, Publishers, Editors, Bloggers, Media, Webmasters and more...
We believe great content should be read and passed around. After all, knowledge IS power. And good business can become great with the right information at their fingertips. If you'd like to share any of the insightful articles on BusinessManagementDaily.com, you may republish or syndicate it without charge.
The only thing we ask is that you keep the article exactly as it was written and formatted. You also need to include an attribution statement and link to the article.
" This information is proudly provided by Business Management Daily.com: http://www.businessmanagementdaily.com/34208/1m-settlement-in-san-francisco-banks-flsa-case "