US Department of Labor finds Nashville country club’s failure to include commissions in wage calculations leads to overtime violations
NASHVILLE, TN – Errors in calculating overtime wages of workers who provided lessons, merchandise sales and equipment services to members and guests at a private Nashville country club led the U.S. Department of Labor to recover $93,750 in back wages and liquidated damages for 12 workers.
Investigators with the department’s Wage and Hour Division found that Belle Meade Country Club failed to include commission payments when they computed overtime pay for employees who worked more than 40 hours in a workweek. By doing so, Belle Meade paid overtime at rates lower than the law allows in violation of the Fair Labor Standards Act.
“Employers who pay commissions, production bonuses and other incentives must include those earnings in the weekly overtime computations,” said Wage and Hour Division Acting District Director Pamela Sullivan in Nashville, Tennessee. “Although employers may intend to benefit non-exempt employees with commission incentive payments, they must ensure they comply with federal overtime laws when they do. This case should encourage all employers to review their pay practices and contact the division with questions to avoid violations.”
For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division. Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.