HR Management & Compliance

Payday Loan Business Pays $500K For Overtime Violations





Quick Cash, a
Kansas-based payday loan company with locations nationwide, has paid $519,088
in back wages to 900 employees to settle allegations that the company violated
the overtime provisions of the federal Fair Labor Standards Act (FLSA). The
back wages cover the period of Jan. 1, 2004, to March 31, 2006. Department of
Labor investigators accused the business of both not paying overtime to
nonexempt salaried managers and not including nondiscretionary bonuses in
computing overtime pay for nonexempt salaried managers and employees who were
paid hourly. Note that in most circumstances, employers must include nondiscretionary
bonuses in the regular rate of pay for purposes of figuring the overtime
premium rate.

 


Paying Overtime: 10 Key Exemption Concepts

Only one thing really matters in the determination as to whether or not an employee is exempt: The duties the employee performs. Learn how to avoid costly, preventable mistakes with our free White Paper, Paying Overtime: 10 Key Exemption Concepts.