U.S. Supreme Court Upholds Significant Overtime Pay Ruling for Workers

May 25, 2017  |  Employment Law, Overtime Violations

In an encouraging move for American workers, the U.S. Supreme Court recently denied a petition to review Flores v. City of San Gabriel, and in doing so upheld that decision which determined that the amount paid to an employee in lieu of health benefits must be included in the employee’s regular rate of pay for purposes of calculating overtime pay.

The Flores Decision

The original ruling in question came about when Danny Flores and a group of fellow police officers sued their employer, the City of San Gabriel, California, for violating the FLSA by miscalculating overtime pay for employees.

Under the FLSA, overtime pay is calculated by multiplying one and half times the regular rate of a worker’s pay. Some employers, such as the City of San Gabriel, offer “cash-in-lieu” payments to workers who opt out of receiving health benefits. In the case of San Gabriel, they decided not to include these “cash-in-lieu” payments when calculating regular rates of pay to determine the overtime compensation owed. This resulted in an underpayment of the overtime wages owed to those police officers.

In cases such as this where the employer underpays the overtime wages owed, it generally has to pay double that amount, plus legal fees, and costs to the employees.

If you believe you are not being paid proper overtime pay under the FLSA for any reason, please contact Baron & Budd’s Employment Law Group at 866-495-1255 to discuss your legal options. You will not be charged for the consultation. We have a multitude of experience helping our clients fight back against overtime violations and we may be able to assist you, too.

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