The U.S. Department of Labor’s Wage and Hour Division has filed suit against Tango Bakery in Garland, Texas, alleging its owners failed to pay 20 workers $75,218 in overtime pay.
DOL investigators claim Tango paid its bakers, baking helpers and front sales workers straight time for all hours worked even when they worked well over 40 hours in a workweek.
On occasion, employees weren’t paid at all for some of the hours they put in.
The bakery apparently did pay some employees overtime, but allegedly failed to include bonuses in their base pay when computing the overtime pay.
Investigators also determined that Tango failed to keep accurate time records as required by the Fair Labor Standards Act.
As a result, the DOL deemed the violations willful and sought liquidated damages. That would double the amount due to $150,436.
Note: Employers must maintain consistent and accurate pay records and procedures. Paying overtime in some cases and not others will definitely alert investigators to other problems.
Also, always include regular nondiscretionary bonuses in employee base pay when computing overtime.