Wage and Hour Division (WHD)
U.S. Department of Labor
NUMMI pays 3,600 employees more than $862,000 in overtime wages following U.S. Department of Labor investigation
SAN FRANCISCO -- New United Motors Manufacturing Inc. (NUMMI) of Fremont, Calif., has paid 3,672 workers a total of $862, 285 in overtime back wages to resolve an investigation by the U.S. Department of Laborís Wage and Hour Division. All payments have been made, compensating employees for errors made in the calculation of overtime wages annual production bonuses.
ďWe have found that a number of employers overlook the Fair Labor Standards Act (FLSA) requirement to include bonuses in the calculation of overtime pay,Ē said George Friday Jr., regional administrator of the Wage and Hour Division in San Francisco.
The Wage and Hour Division found that the bonuses failed to reflect overtime hours worked during the week when the bonuses were issued. NUMMIís employees can qualify for production bonuses under their labor agreement. The employees were production line workers manufacturing cars and trucks for Toyota and General Motors.
The FLSA requires that covered employees be paid at least the federal minimum wage of $6.55 per hour, increasing to $7.25 per hour July 24, and receive overtime at one and one-half times their regular rates of pay for hours worked beyond 40 per week. Employers must also maintain accurate time and payroll records.
For more information about the FLSA, call the Department of Laborís toll-free helpline at 866-4US-WAGE (487-9243). Information is also available on the Internet at http://www.wagehour.dol.gov or by calling the divisionís San Francisco District Office at 415-625-7720. In addition to English, assistance is available in Spanish as well as other languages.
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