Baron & Budd is currently representing plaintiffs in a Fair Labor Standards Act (FLSA) collective action case alleging that the construction equipment rental company Sunbelt Rentals Inc. violated the federal FLSA by denying its employees all overtime pay they are due. The lawsuit claims that the rental company did not pay their employees all overtime pay due because excluded profit-share pay was not included in determining the overtime-hourly rate of pay.
“The FLSA says that non-discretionary bonuses, such as Sunbelt’s profit-share compensation, must be included in determining the overtime hourly rate of pay of employees,” said Allen Vaught, head of Baron and Budd’s FLSA litigation section. “So, time and one-half pay for Sunbelt employees should be calculated not only off of the hourly rate of pay, but instead off of the hourly rate of pay plus profit-sharing compensation. So, for an employee paid $15 per hour, the time and one-half rate of pay is not $22.50, but rather a higher amount based on the amount of profit-share compensation paid to the employee.”
Sunbelt Rentals is a national construction equipment rental company with over 100 locations across the U.S. If Sunbelt is found to have violated the FLSA overtime laws, the ruling could affect thousands of employees in multiple states.