Overtime Pay: Calculating Bonuses into the Regular Rate

Under California labor laws, if you are an hourly employee bonuses and other compensation must be included in your regular rate of pay for purposes of calculating your overtime rate. For example, suppose you are working as a property manager and as part of the job you receive a unit to live in that costs $900/month. The $900 must then be divided by 160 hours (4 weeks at 40 hours a week) and then must be added to your regular rate of pay BEFORE overtime is calculated. 

Under this example, $900 / 160 hours = $5 

Suppose you are paid $15 per hour of work. When the employer calculates your overtime rate of pay, the employer takes the $15 and multiplies it by 1.5x, which California overtime laws set as the overtime rate. Therefore, your overtime rate of pay is $22.5. However, this would be considered a violation of Californiaq labor laws in that the regular rate of pay should have included an additional $5 of pay.

Therefore, your hourly rate of pay should have been $15/hour + $5= $20 hourly rate of pay

The overtime rate should have been 1.5 times the regular rate of $20, which would be $30/hour vs. the $22.5/hour that the employer is paying you. 

This is $7.5 you are losing per hour of overtime you work. Suppose you work 20 hours a week, that would be an additional $150 for you to spend per week. Per year, that little mistake by your employer would cost you $150 a week times 52 weeks = $7,800 year. 

The statute of limitations in these types of overtime cases can extend back four years so your potential claim could be valued at $31,200 which does not include damages, such as waiting time penalties other penalties and interest. 

Finally, these types of cases are great for class action lawsuits because it is usually very systematic when employers fail to include bonuses in the regular rate of pay for purposes of calculating your overtime rate. 

Contact one of our employment law attorneys for more information about your legal rights. 

Brinker on Employment Law Breaks

On Thursday the California Supreme Court made a ruling in the much anticipated Brinker case. The case primarily involved labor law breaks at work in California.

The employees argued that the employer violated California labor laws by failing to make sure that the employees in fact took a 30 minute meal break. However, the court disagreed, ruling that all the employer is required to do under meal and rest break laws is make sure that the employees have the opportunity to take the break.

What is overtime in California

Many employees wonder, “what is overtime in California?” Under California labor laws companies are required to pay employees overtime for working more than 8 hours in a day or 40 hours in a week. Note that this is different than federal overtime laws which only require employers to pay employees additional compensation when they work more than 40 hours in a week. Under California wage & hour laws, employees are also supposed to be paid overtime when they work 7 consecutive workdays in the same workweek. 

Despite the fact that many employees wonder what is overtime in California, most employers are very familiar with the rules. In fact, companies often violate overtime laws because labor is the most expensive overhead cost for companies and cutting back on wages is the best way to alleviate some of this overhead. Even though they anticipate law suits for such practices, the lawsuits almost always settle for a fraction of what they would have otherwise been paying in actual overtime compensation.

                                                                                  

If you are wondering, “what is overtime in California” contact a California overtime lawyer. Most experienced employment lawyers work on a contingent fee basis. This simply means that that if they don’t win, you don’t pay. If they do win, they keep a percentage as payment. Furthermore, most overtime lawyers offer a free consultation. In this consultation (usually done over the phone) you have the opportunity to divulge your side of the story and see if you have a good case against your employer. There is virtually nothing to lose by simply contacting an overtime lawyer and discussing your situation for a few minutes.

So what is overtime in California? Some important things to remember are that if you are a non-exempt employee, you are entitled to overtime at one-and-a-half times your regular rate of pay for all hours worked past 8 in any workday. You are also entitled to double-time (twice your regular rate of pay) for all hours worked past 12 in a single workday. There are many other unique things that make California labor law favorable to the employee. Take the time to educate yourself and see if you possible are entitled to lost overtime wages.

Final Approval of Class Action Settlement

Notice of Entry of Order re Coordination

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Pregnancy Disability Leave

Under Pregnancy Disability Leave (PDL) policy, there are significant protections for pregnant employees. Essentially, it is illegal to discriminate or retaliate against an employee due to pregnancy. Harassing and wrongfully terminating a pregnant employee is also illegal. If an employee becomes pregnant, it is her right to take a pregnancy disability leave. A doctor or other health care provider ultimately determines whether an employee is disabled by pregnancy.

Employers with five or more employees are required to provide pregnancy disability leave. If an employer has less than five employees, they still may need to follow public policy when it comes to PDL. In general, employers are not mandated to pay employees during PDL. Nonetheless, it is crucial for a covered employer to provide reasonable accommodations to a pregnant employee. If an employer provides other paid leaves due to disabilities, they are also required to provide paid PDL.

Generally, four months is the maximum amount of time for a pregnancy disability leave. It is important to note that the four months applies to each individual pregnancy and is not a time allotment for each year. Moreover, the four months of a PDL does not need to be taken consecutively. It may be taken sporadically and only when needed. PDL does not include time to bond with your child. It only includes time when a woman is unable to work due to pregnancy-related health conditions.

Like the Family and Medical Leave Act (FMLA), a woman should try to provide a 30-day notice to their employer before taking PDL. It is an employee’s responsibility to make a reasonable effort to schedule medical treatment at a time that will have a minimal disruption on the company’s operation. Of course, it is sometimes impossible to anticipate and plan for PDL. Therefore, an employer cannot deny PDL based on an employee’s inability to provide advance notice of the need for the leave.

If their employer is covered, an employee is eligible for PDL at the beginning of their employment relationship. After granting PDL, employers are required to reinstate the employee to the same position after returning. They must also continue the employee’s earned benefits. If reinstating the employee to the same position would cause excessive harm to the company, then the employer is usually required to provide the employee with a comparable position.

Alternatives for Class Certification

According to Rule 23(b), there are three alternative grounds for class certification. If these alternative grounds are inapplicable, then class certification will be rejected. Rule 23(b) is meant to be applied liberally, not restrictively, because courts are usually in favor of class action certification. They have a favorable view because class action certification often produces significant public policy benefits.

Under Rule 23(b)(1), an action is eligible “if individual adjudication of the controversy would prejudice either the party opposing the class (b)(1)(A), or the class members themselves, (b)(1)(B).” Therefore, Rule 23(b)(1) allows class certification if a defendant could be faced with conflicting orders of conduct from individual suits. Class certification under Rule 23(b)(1)(A) is applicable if there is a situation “in which different results in separate actions would result in the opposing parties’ inability to pursue a clear course of conduct.” On the other hand, 23(b)(1)(A) certification is not simply justified when it is apparent that some plaintiffs may win and some may lose in separate lawsuits against the same defendant. Under Rule 23(b)(1)(B), class certification is obligatory when it is evident that individual claims would exhaust the limited fund and disallow succeeding plaintiffs from recovery. Therefore, “a (b)(1)(B) class action is commonly utilized to avoid an unfair preference for the early claimants at the expense of later claimants.”

According to Rule 23(b)(2), actions are “limited to those class actions seeking primarily injunctive or corresponding declaratory relief” (Barnes v. The American Tobacco Company). A (b)(2) class must be unified and homogeneous; therefore, it must be evident that the defendant has acted on grounds that are applicable and relevant to all of the class members. Furthermore, class certification under Rule 23(b)(3) is appropriate when “the court finds that the questions of law or fact common to the members of the class predominate over any questions affecting only individual members, and that a class action is superior to other available methods for the fair and efficient adjudication of the controversy.”

Essentially, in order for there to be class certification, it must be confirmed and demonstrated that class action litigation is the best choice for the situation. Class action is considered to be superior if there are numerous class members who have small claims that are not worthy of individual adjudication. In other words, if there are multiple people who hold “negative value suits” against the same defendant, then class action is the justifiable superior method. It is important to keep in mind, however, that the combination of individual claims with unique damages can cause a class action case to be unmanageable.