QuikTrip failed to pay the additional overtime premium due on performance-related bonuses. An employer is not required by law to provide a bonus, but if a nondiscretionary bonus is paid, the bonus must be included as part of the employee's regular rate of pay for purposes of computing overtime. Employees worked in the states of Arizona, Georgia, Illinois, Iowa, Kansas, Missouri, Nebraska, Oklahoma and Texas.
Thornbrugh said, "QuikTrip pays store personnel three different ways: The first way is the hourly rate and the overtime rate, which we pay way above what is required by law. The second way is based on the profitability of the company. The third way we pay them is what we call a 'customer performance bonus,' which is our mystery shopping bonus. What happened is we just had an internal programming error, and some of our people were getting paid more than they should have been, and others, unfortunately, were not being paid what they should have been. So working with the Department of Labor, we found that and corrected it, and individuals that did not receive what they should have, we made sure that they did."
He added, "Was it our fault? Yes. Did we work to get it corrected? You bet."
As for the people who got more, he said, "We're not going to penalize them. We wouldn't do that."
The FLSA requires that covered employees be paid at least the federal minimum wage and receive overtime at one and one-half times their regular rates of pay for hours worked beyond 40 per week. Effective July 24, 2009, the minimum wage is $7.25 per hour. Employers must also maintain accurate time and payroll records.
"I am pleased that this case has resulted in almost $750,000 in back wages being paid to thousands of workers across nine states," said Secretary of Labor Hilda L. Solis.
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