America’s favorite denim company has apparently not given proper pay to hundreds of its employees, which has led up to some legal issues. Reuters reported that the U.S. Labor Department found that Levi Strauss & Co violated federal overtime provisions, where an investigation revealed that the company failed to record all the hours employees worked in its payroll system.
Several groups of workers with Levi Strauss were misclassified as exempt from overtime pay, meaning some employees should have been earning more money by not having to work “off the clock.”
Levi Strauss has agreed to pay more than $1 million in back wages to 596 of its employees. The San Francisco-based company is reportedly cooperating with government officials to address the federal overtime violations.
What exactly are the federal rules regarding overtime pay in the United States? FindLaw states that the Fair Labor Standards Act (FLSA) requires covered, nonexempt workers to earn a minimum wage for their labor and be paid at a rate that is not less than one and one-half times their regular rate of pay for all hours worked beyond 40 hours in a single work week.
FLSA does not actually limit the number of hours in a day or days in a week that adults can work, but the law simply requires more pay for certain non-salaried employees when they're working more than 40 hours in a week. More information about the types of employees who are covered and not exempt from overtime pay can be found through our Related Resource pages.