In the case of the US Dept. of Labor v. Fire & Safety Investigation, Fire & Safety Investigation Consulting Services (Fire & Safety) was accused of violating the FLSA by not paying certain employees proper overtime pay.
Fire & Safety employed consultants who worked on a schedule called a “hitch”, which involved working 12 hours a day for 14 consecutive days (a total of 168 hours), which was followed by 14 consecutive days off. Initially, the consultants were paid on an hourly basis, with overtime compensation for the hours they worked over 40 per week.
Later on, Fire & Safety switched to a fixed “hitch rate” for the full 168-hour hitch. This means that if a consultant worked less than 168 hours, their wage would be adjusted accordingly using a “blended rate” where their hitch rate would be divided by 168 and multiplied by the number of hours they worked.
The Department of Labor (DOL) received a complaint alleging that Fire & Safety violated the FLSA. An investigation was conducted that confirmed Fire & Safety’s failure to pay proper overtime and keep accurate records. The DOL filed a complaint against Fire & Safety to seek back wages for overtime pay, liquidated damages, and an injunction (authoritative warning).
The district court granted this motion, awarding back wages and liquidated damages to the employees affected by the “blended rate” scheme.
Key lessons from this case:
- Blended pay schemes that use a single rate for all hours worked, regardless of overtime or not, may violate the FLSA.
- Employers who violate the FLSA can be held liable for not only unpaid overtime wages but also additional damages to compensate for the violation.
- Employees can file complaints to the Department of Labor, which can investigate the matter and pursue legal action on their behalf.
If you want to know more about overtime regulations, read our guide on West Virginia Overtime Laws.
