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 hourlyhad 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.
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- Employee said he would do work free? You must still comply with the FLSA
- 2nd Circuit: CEO can be personally liable for FLSA violations
- Night-shift assignments: Must we pay more?
- When to pay for 'on call' hours? Ignorance of law isn't an excuse