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Snap-On Equipment Miscalculation of Overtime Pay Class Action

Building with Snap-On Sign

The Fair Labor Standards Act (FLSA) says that non-discretionary bonuses, such as shift- and hour-based premiums, must be taken into consideration when calculating overtime pay. The complaint for this class action says that Snap-On Equipment, Inc. did not do this for its employees. 

Two classes are defined for this action.

The FLSA Class is all hourly employees who were paid a performance bonus, who were employed by Snap-On at any time between October 19, 2015 and the date of judgment in this case, who were classified by Snap-On as non-exempt from FLSA’s overtime requirements and who are entitled to the payment of these damages: (a) amounts for all hours worked, including payment of proper overtime for all hours worked over forty in a workweek, and (b) liquidated damages and attorneys’ fees and costs.

The AMWA Class is all hourly employees who are or were employed by Snap-On, during the relevant time period, who received a performance bonus in connection with any week in which they worked more than forty hours.  

Snap-On performs automotive repairs, including automotive wheel services and collision repairs. Plaintiff Frederick Frazier has worked for the company in its manufacturing, shipping, and tire-changing departments and has been classified as not exempt from overtime pay. 

Throughout his time with the company, the complaint says, he has worked more than forty hours per week and been paid performance bonuses. The performance bonuses were not discretionary; they were paid whenever “certain objective and measurable criteria were met.” Specifically, the complaint says, “Defendant paid Plaintiff and other hourly employees who received a performance bonus one-and-one-half (1.5) times their base hourly rate for each hour they worked over forty (40) in a workweek.”

But the complaint claims that these performance bonuses were not included in the calculation of Frazier’s overtime pay. 

The FLSA requires that such bonuses “must be totaled in with other earnings to determine the regular rate on which overtime pay must be based.” 

The failure to do so, the complaint says, is also a violation of the Arkansas Minimum Wage Act (AMWA).

The complaint asks for judgment for damages for all unpaid overtime compensation under both the FLSA and the AMWA, judgment for liquidated damages pursuant to the AMWA, plus an order directing the company to pay pre-judgment interest, reasonable attorneys’ fees and costs, and whatever other relief the court finds to be necessary, just, and proper.

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