Aerospace Firm Pays Almost $1 Million In Executive Exemption Dispute

Ball Aerospace and
Technologies Inc. will pay $976,327 to settle charges by the U.S. Department of
Labor’s (DOL’s) Wage and Hour Division that the company misused the executive
exemption from overtime. The DOL alleged that Ball, based in Broomfield, Colo.,
changed top-tier hourly senior technicians to salaried-exempt status once they
reached the maximum pay on the firm’s hourly scale. However, the change in
exempt status wasn’t accompanied by any change in responsibilities.

The settlement includes
overtime back wages of $383,235, plus another $593,092 for requiring the reclassified
technicians to work through lunch periods without compensation. The settlement
proceeds will be shared by 904 employees who worked in Ball facilities in Colorado, New Mexico, Ohio, Georgia,
and the District of Columbia.

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.