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July 21, 2021

Federal Lawsuit Alleges FLSA Regular Rate Violation for COVID-19 Bonus Pay

In Sanchez v. Gold Standard Enterprise, Inc., an employee alleges that his employer, Binny’s Beverage Depot, paid him and other employees extra money during the COVID-19 pandemic, but failed to include that money in the their “regular rate” for purposes of calculating overtime, in violation of the Fair Labor Standards Act (FLSA).
Home » News » Federal Lawsuit Alleges FLSA Regular Rate Violation for COVID-19 Bonus Pay

Chelsea Williams
Wed, 07/21/2021

In Sanchez v. Gold Standard Enterprise, Inc., an employee alleges that his employer, Binny’s Beverage Depot, paid him and other employees extra money during the COVID-19 pandemic, but failed to include that money in the their “regular rate” for purposes of calculating overtime, in violation of the Fair Labor Standards Act (FLSA). The lawsuit alleges that Binny’s promised to pay employees 1.5 times their hourly rate for all hours worked between March 15 and July 4, 2020. Employees were also promised an extra $2 per hour for all hours worked between July 5, 2020 and January 2, 2021, which Binny’s called “temporary bonus pay.” However, the employees allege that Binny’s failed to include the increased pay in the regular rate for overtime calculations.

An employee’s regular rate of pay is the rate at which overtime compensation must be calculated, and often includes work-related payments like shift differentials, bonuses (including temporary bonuses), longevity pay, and educational incentive pay. The U.S. Department of Labor issued guidance during the pandemic that specified that COVID-19 supplemental payments must be included in regular rate calculations.

For more information, visit our webpage on what payments need to be included in your regular rate of pay for overtime calculation purposes.

If you have received work-related payments from your employer and are not sure the additional payments were included in your overtime payments, contacts us at  info@mselaborlaw.com.

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When McGillivary Steele Elkin LLP decides to take your case, it is because we believe there is an unacceptable workplace violation that has negatively impacted you or resulted in your employer paying less than what the law requires and which we have a reasonable chance of remedying. We recognize that meritorious claims should not go unremedied because of the level of a person’s resources.

To ensure accessible and available legal representation for all our clients, MSE handles cases through different forms of fee arrangements, including contingency fees, hourly fees and fixed fees.

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