In Thompson v. Regions Security Service, Inc., security guard, David Thompson issued a lawsuit against Regions Security Service, Inc. for altering his regular wages to avoid abiding by the FLSA overtime compensation regulations.
When Jackson first started working for Regional Security, his normal wage rate was $13 an hour for a standard 40-hour work week. After seven months of putting in overtime work, the company had decreased his normal rate to only $11.15 an hour. They then stopped arranging overtime hours for Jackson and reverted his normal rate to $13 an hour. The confusion sets in when Jackson is unsure if his normal rate was $13 an hour or $11.15 an hour during the period of his working overtime.
The court made clear that Jackson’s allegations against Regions Security are supported by the theory of setting a fake wage rate of $11.15 to avoid paying extra for his overtime hours. In the duration that Jackson spent working overtime, his rate was reduced which caused him to earn less than should have been. Additionally, Regions Security conveniently decided to revert to $13 an hour once they stopped arranging overtime hours for Jackson.
The case has been remanded (sent to the lower courts for further action).
Key lessons from this case:
- Altering an employee’s wage rate during periods that they work overtime, such as in this case, can be seen as a blatant attempt of violating labor laws by attempting to avoid making overtime payments to employees.
- Employees need to know their rights when bringing allegations to light concerning their overtime compensation.
If you want to know more about overtime regulations, read our guide on Florida Overtime Laws.
