Ohio Jeweler to Shell Out $1.29M in Back Pay To Workers

June 13, 2006 (PLANSPONSOR.com) - The Department of Labor (DoL) said Tuesday that an Ohio jeweler will have to pay about $1.29 million in back wages to 16,820 current and former workers after not including incentive pay when calculating their overtime compensation.

According to a news release, the DoL said Sterling Jewelers Inc. of Akron, Ohio, violated the Fair Labor Standard Act (FLSA) overtime requirements at 1,200 locations in 41 states.

On Monday, a complaint and settlement papers were filed with the US District Court for the Northern District of Ohio. Sterling admitted to violating FSLA rules.

Charges against the company were filed because it failed to include incentive pay in the calculation of overtime hours and it failed to pay employees for all hours worked, which the employees had entered using the firm’s electronic timekeeping system, according to the DoL news release.

As a result of these violations workers were paid less than time and a half for overtime hours. The FLSA requires employers to pay overtime-eligible employees at least the federal minimum wage for all hours worked and time and one-half their regular rate of pay for hours worked over 40 in a week.