In the case of Chevalier v. General Nutrition Centers, Tawny L. Chevalier and Andrew Hiller claimed that their former employer, General Nutrition Centers (a retail company), had violated the Pennsylvania Minimum Wage Act (PMWA) when calculating their overtime pay.
GCN had followed the Fluctuating Workweek (FWW) method of multiplying overtime hours by 0.5 instead of the standard 1.5 rate.
GNC argued that their calculations should be allowed as it was aligned with the FWW, which is under the federal Fair Labor Standards Act (FLSA). The Pennsylvania Supreme Court rejected the use of the FWW method for calculating the employees’ overtime compensation.
The court then clarified that employees in Pennsylvania should be compensated at a rate of 1.5 times their regular hourly rate for any hours worked above 40 in a week.
GNC ultimately agreed on a settlement of $1,378,494 (plus interest) to be distributed to employees.
Key lessons from this case:
- This case shows that sometimes, rate calculation between federal and state law can be different.
- This case emphasizes the need for employees and employers to adhere to the PMWA overtime legislation standards.
- In Pennsylvania, employers need to review their policies to ensure fairness to employees.
If you want to know more about overtime regulations, read our guide on Pennsylvania Overtime Laws.
