Migliaccio & Rathod LLP is investigating whether Ecotex Healthcare Laundry Services properly calculated overtime compensation for hourly employees who received production-based incentive pay.
Reports provided for this investigation indicate that certain Ecotex employees may have received additional production incentive payments of approximately $0.45 to $1.00 based on achieving specified production metrics.
Production incentives tied to predetermined productivity requirements are generally considered nondiscretionary compensation under federal overtime law. In many circumstances, this compensation must be included in an employee’s regular rate when overtime is calculated.
If overtime was calculated solely from an employee’s ordinary hourly wage without accounting for qualifying production incentives, affected employees may have received less overtime than required by law.
Employees May Have Experienced:
- Receiving additional pay for meeting production or productivity goals;
- Receiving incentive compensation based on predetermined production metrics;
- Working more than 40 hours during weeks when production incentives were earned;
- Receiving overtime based only on their standard hourly wage;
- Receiving production incentives separately from their ordinary wages; and
- Not receiving an overtime adjustment associated with production incentive payments.
Potential Claims May Include:
- Failure to include production incentives in the regular rate;
- Underpayment of overtime compensation;
- Improper calculation of overtime premiums;
- Violations of the Fair Labor Standards Act;
- Violations of applicable state wage laws; and
- Recovery of unpaid overtime and other available damages.
Signs You May Be Affected:
- You worked for Ecotex or Healthcare Laundry Services as an hourly employee;
- You received additional compensation for meeting production or productivity goals;
- Your incentive pay was based on predetermined performance standards;
- You worked more than 40 hours during weeks when you earned production incentives;
- Your overtime rate was calculated from your base hourly wage alone; or
- Your paystub does not show an overtime adjustment associated with production incentive pay.
If you have encountered these issues, we would like to hear from you. Please complete the contact form on this page, send us an email at [email protected], or give us a call.