AT&T settles OT dispute — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily

AT&T settles OT dispute

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in Human Resources,Overtime Labor Laws

AT&T Prime Communications, one of the nation’s largest cellphone plan providers, will pay $122,254 to 255 workers to settle charges it failed to pay them for overtime work.

The U.S. Department of Labor’s Wage and Hour Division (WHD) investigated complaints the company was not properly calculating overtime pay. WHD found the company failed to include commissions that hourly nonexempt employees had earned when calculating overtime pay. The practice deprived workers of overtime pay in 11 states including New York.

The company agreed to amend its pay practices to include commissions in the future.

Note: When calculating overtime, employers must figure the em­­ployee’s hourly rate using all income the employee earns and dividing it by the number of hours worked. That number becomes the employee’s base hourly rate.

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