MENUMENU
  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR

  • LOGIN
  • SIGN UP FREE

HR Morning

MENUMENU
  • FREE RESOURCES
  • PREMIUM CONTENT
        • SEE MORE
          PREMIUM RESOURCES
  • HR DEEP DIVES
        • Coronavirus (COVID-19) Resources for HR Professionals
          Employment Law
          Labor Law Posting Requirements: Everything You Need to Know
          Recruiting
          businesswoman selecting future employees on digital interfaces
          Recruiting Resources for HR & Hiring Managers
          Performance Management
          vector image of young female making star rating
          Performance Review Resources
          Employment Law
          Understanding Equal Employment Opportunity and the EEOC
          Recruiting
          Onboarding Resources for HR & Hiring Managers
  • CORONAVIRUS & HR
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • Performance Management
  • HR Technology
  • More
    • Leadership & Strategy
    • Compensation
    • Staff Administration
    • Policy & Procedures
    • Wellness
    • Staff Departure
    • Employee Services
    • Work Location
    • HR Career & Self-Care
    • Health Care
    • Retirement Plans

Retailer learns the hard way: State law can be more stringent than FLSA

aca, retaliation, OSHA
Tim Gould
by Tim Gould
July 16, 2014
2 minute read
  • SHARE ON

With all the attention paid to complying with federal wage-and-hour laws, it’s easy for state pay laws to get overlooked. That becomes a major issue when those state laws are more stringent than the Fair Labor Standards Act (FLSA).

That’s one of the major takeaways from a recent lawsuit involving electronics giant RadioShack Corp. (RSH).

A federal judge just ruled that struggling retailer violated Pennsylvania state law because of the way it calculated employees’ overtime wages.
The case stemmed from a lawsuit by a former PA store manager that accused RadioShack of stiffing workers on overtime payments since 2010. In response, RadioShack had the case moved to federal court and asked a judge to dismiss the OT claims.

But that plan backfired when the judge ruled against the company. The judge said that although the company’s OT calculations do comply with federal regs, they violate the more expansive state law, the Minimum Wage Act, which businesses operating in PA must abide by.

So the next stage of the lawsuit will deal with determining specifics and awarding damages, which has been cited as around $5.8 million in unpaid overtime claims.

Fluctuating workweek at issue

Specifically, here’s where RadioShack ran into problems: Although the FLSA allows employers to use a “fluctuating workweek” to determine employees’ OT, PA’s Minimum Wage Act does not.

Under the fluctuating workweek method, employees receive a guaranteed fixed weekly salary for all straight-time hours — regardless of the number of the hours they actually work. Then, they earn an additional one-half of their regular rate for all hours worked over 40 in a single workweek.

The method allows employers to divide workers’ weekly salaries by the number of hours they actually work to determine their regular rate. And, under the FLSA, as long as the employee’s regular rate of is more than the federal minimum wage, employers can compensate that employee for any hours worked over 40 in a single week with not less than one-half the regular rate of pay.

Get the latest from HRMorning in your inbox PLUS immediately access 10 FREE HR guides.

I WANT MY FREE GUIDES

Keep Up To Date with the Latest HR News

With HRMorning arriving in your inbox, you will never miss critical stories on labor laws, benefits, retention and onboarding strategies.

Sign up for a free HRMorning membership and get our newsletter!
  • This field is for validation purposes and should be left unchanged.
HR Morning Logo
  • Facebook
  • Twitter
  • Linked In
  • ABOUT HRMORNING
  • ADVERTISE WITH US
  • WRITE FOR US
  • CONTACT
  • Employment Law
  • Benefits
  • Recruiting
  • Talent Management
  • HR Technology
  • Performance Management
  • Leadership & Strategy
  • Compensation & Payroll
  • Policy & Culture
  • Staff Administration
  • Wellness & Safety
  • Staff Departure
  • Employee Services
  • Work Location
  • HR Career & Self-Care

HRMorning, part of the SuccessFuel Network, provides the latest HR and employment law news for HR professionals in the trenches of small-to-medium-sized businesses. Rather than simply regurgitating the day’s headlines, HRMorning delivers actionable insights, helping HR execs understand what HR trends mean to their business.

Privacy Policy Terms of Service
Copyright © 2021 SuccessFuel

WELCOME BACK!

Enter your username and password below to log in

Forget Your Username or Password?

Reset Password

Lost your password? Please enter your username or email address. You will receive a link to create a new password via email.

Log In

During your free trial, you can cancel at any time with a single click on your “Account” page.  It’s that easy.

Why do we need your credit card for a free trial?

We ask for your credit card to allow your subscription to continue should you decide to keep your membership beyond the free trial period.  This prevents any interruption of content access.

Your card will not be charged at any point during your 21 day free trial
and you may cancel at any time during your free trial.

preloader