In the case of Gonzalez v. Diamond Resorts International Marketing, Daniel Gonzalez filed a lawsuit against Diamond Resorts International Marketing (Diamond) and West Maui Resorts Partners (WMRP). Gonzalez filed this lawsuit on behalf of himself and other similarly situated individuals.
Gonzalez was a vacation counselor employed by WMRP. His job involved providing services and assistance to vacationers and guests at the resorts operated by WMRP. Gonzalez alleged that WMRP violated the FLSA and Hawaii law by miscalculating his overtime pay. He claimed that he was improperly paid overtime based on the state minimum wage instead of the employee’s regular rate of pay, which should include bonuses and commissions. Gonzalez argued that he and other vacation counselors were affected by this violation.
Gonzalez sought a partial summary judgment on the issue of whether WMRP miscalculated overtime pay. He also sought a ruling that they acted willfully, which would extend the limitation period under the FLSA and subject WMRP to liquidated damages. WMRP argued that Gonzalez’s motion was premature because he was required to establish that he and the other employees were entitled to overtime pay. WMRP also argued that certain overtime exemptions applied and disregarded Gonzalez’s claims regarding his status as an employee and his hours worked.
The court determined that Diamond is an employer under the FLSA, WMRP is an employer under the Hawaii law, and Gonzalez and the other workers are considered employers. The court finds that the defendants calculated overtime pay based on the state minimum wage rate and did not include bonuses and commissions, which violated the FLSA and Hawaii law.
The court has not decided on whether Diamond made efforts to understand its overtime obligations and whether it acted intentionally. However, the court found that WMRP did not attempt to understand its obligations under Hawaii law. If WMRP is found to have violated Hawaii law, it would be considered an intentional violation. Therefore, the court ruled in favor of Gonzalez on this issue.
Key lessons from this case:
- Employers must include bonuses and commissions when calculating overtime pay for employees.
- Willful violations of overtime laws can result in extended limitation periods and subject employers to liquidated damages.
- An employer’s ignorance of overtime regulations is not an excuse for noncompliance.
If you want to know more about overtime regulations, read our guide on Hawaii Overtime Laws.
