Failure to Include Bonus In Calculating Overtime Pay Leads to $830,000 Settlement

Bonuses paid employees must be considered when calculating their overtime pay rate. The failure to do so by the energy company Kinder Morgan led to a class action lawsuit under the Fair Labor Standards Act that has been settled for $830,000.

Source: Newswire.com

Overtime pay must be at 1 1/2 times the employee's regular rate of pay. Non-discretionary bonuses paid the employee must be considered in calculating the employee's regular rate of pay and their overtime pay rate under both the federal Fair Labor Standards Act and Kentucky law.

Lexington, Kentucky overtime lawyer Robert Abell represents employees in cases seeking wages and overtime; contact him at 859-254-7076.