Snap-On Equipment Failed to Account for Bonuses when Tallying OT Pay, Lawsuit Alleges

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Snap-On Equipment, Inc. is the defendant in a proposed class and collective action filed by a former employee who alleges he’s owed unpaid overtime wages dating back at least three years.

Filed in Arkansas, the complaint states the plaintiff worked at the defendant’s Conway auto repair and collision shop from September 2016 through August 2018. The case says the plaintiff and other hourly paid employees received performance bonuses in addition to time-and-a-half overtime pay for hours worked in excess of 40 each week. The problem, according to the suit, is that Snap-On allegedly failed to account for these non-discretionary bonuses in workers’ regular hourly pay rates when calculating the individuals’ overtime wages. From the suit:

“Section 778.208 of Title 29 of the Code of Federal Regulations requires that non-discretionary bonuses, such as shift and hour-based premiums, ‘must be totaled in with other earnings to determine the regular rate on which overtime pay must be based.' 

Defendant violated the [Fair Labor Standards Act] and the [Arkansas Minimum Wage Act] by not including the nondiscretionary bonuses of Plaintiff and other hourly employees who received a performance bonus in their regular rate when calculating their overtime pay.”