Best Buy might be facing a class action lawsuit over overtime wage violations. The company might have violated the rights of its employees by failing to provide them with proper overtime pay.
The people whom Best Buy employed in the last four years might receive remedies. Class members might recover the funds the company allegedly failed to pay them. Because Best Buy might have to pay millions of dollars as a recovery for them.
The investigation started when former employees alleged that Best Buy’s business practices led to underpayment of overtime wages and the company’s wage statements were legally non-compliant to the California law.
Yet, the Enforcement Policies and Interpretations Manual of the Division of Labor Standards Enforcement (“DLSE Manual”) sets out the methodology of calculating overtime wages in California.
In short, employers should calculate overtime wages in California based on each non-exempt employee’s rate of pay. This includes the following:
- Hourly earnings, salary, piece of work earnings, commissions, non-discretionary bonuses and the value of meals and lodging
- Any sum paid for hours worked must also be included in the calculation of the regular rate of pay used in the computation of overtime wages
The DLSE Manual provides two formulas for California employees to follow when calculating overtime based on production bonuses and retention bonuses. The plaintiff states that Best Buy failed to provide bonuses in accordance with these requirements. If so, the company might have been violating California law.
About the company
Best Buy is a leading retailer of technology products, services, and solutions. It offers low prices and expert service to its thousands of consumers every day. Best Buy has operations in the United States as well as in Canada and Mexico both physically and online. Over 70% of the U.S. population lives with 15 minutes of a Best Buy store, according to the company.