Companies may have violated Fair Labor Standards Act

October 8, 2018, DALLAS, Texas – Today, the national law firm of Baron & Budd announced that it is investigating cases where employees may not have been paid all wages due to them. The investigation covers companies that have failed to include commissions or bonuses when calculating overtime rates for some hourly or salaried employees. This has resulted in an incorrect calculation of the employees’ overtime rate, and therefore, a shortage in their pay.

The Fair Labor Standards Act (FLSA) is the controlling federal statute regarding employee compensation. It is designed to protect workers from the predatory practices of employers when it comes to overtime compensation.  The Act states that nonexempt employees must receive overtime pay at one and one-half times the employee’s regular rate of pay for all hours worked over 40 in a workweek.

“Employees must be paid for all their time worked,” said Allen Vaught. “This includes training, safety meetings, and unpaid meal periods when the employee works,” he added. Employees who earn commission or bonus pay must have that amount added into the calculations of their overtime rate, if they are overtime-eligible employees.

Since the maximum look-back period is three years, individuals generally must have been an employee of the company within the past three years to have a potential claim for unpaid wages and damages.

About Baron & Budd, P.C.

Baron & Budd, P.C., is among the largest and most accomplished plaintiffs’ law firms in the country. With more than 40 years of experience, Baron & Budd has the expertise and resources to handle complex litigation throughout the United States. As a law firm that takes pride in remaining at the forefront of litigation, Baron & Budd has spearheaded many significant cases for hundreds of entities and thousands of individuals. Since the firm was founded in 1977, Baron & Budd has achieved substantial national acclaim for its work on cutting-edge litigation, trying hundreds of cases to verdict and settling tens of thousands of cases in areas of litigation as diverse as dangerous pharmaceuticals and defective medical devices, asbestos and mesothelioma, environmental contamination, fraudulent banking practices, motor vehicles, employment, and other consumer fraud issues.