The City of Chickasha, Oklahoma and has settled an FLSA lawsuit with 31 city firefighters for almost $150,000. The settlement stems from a December 2020 lawsuit filed in the U.S. District Court for the Western District of Oklahoma. The firefighters alleged the city failed to include longevity pay in their regular rate of pay. The FLSA requires wage augments, like longevity pay, included in an employee’s regular rate. Proper calculation of the regular rate is critical since all FLSA overtime must be paid at a rate not less than time and one-half of the regular rate. When employers fail to include wage augments in the regular rate, employees get shorted on their overtime rate.
Here is more on the story, from Curt Varone’s Fire Law Blog.