Manufacturer fined $259K for denying workers earned overtime

April 3, 2023
Jadex Inc. and its subsidiaries improperly calculated overtime rates for its employees by not including incentives, bonuses, and premium pay into employees’ regular rates.

The U.S. Department of Labor’s Wage and Hour Division has recovered $259,474 for 939 employees who were denied earned overtime. According to the department, Jadex Inc. and its subsidiaries improperly calculated overtime rates for its employees by not including incentives, bonuses, and premium pay into employees’ regular rates. This omission meant that Jadex paid overtime at rates lower than required under the Fair Labor Standards Act.

In a recent quote, Wage and Hour Division District Director Jamie Benefiel said, “Employers must understand all applicable rules when it comes to paying workers overtime. This includes adding bonuses and incentive pay when factoring overtime pay. Anything less robs workers of their hard-earned wages. The Wage and Hour Division is able to provide resources to both employers and employees to help understand their responsibilities and rights under the law.”