Covina, CA Sued Over Allegedly Miscalculated Overtime Wages

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Covina, California is the defendant in a proposed collective action in which the plaintiff claims the city illegally miscalculated certain workers’ regular rates of pay for the purposes of tallying overtime wages. According to the lawsuit, Covina’s alleged “undercounting” of workers’ regular pay rates has resulted in the underpayment of overtime wages, with the city in effect permitting some employees to work overtime without time-and-a-half pay.

The lawsuit more specifically claims Covina failed to account for in workers’ regular rates money paid to the plaintiff and those similarly situated in lieu of city-provided health insurance benefits. The complaint alleges the same can be said for money paid by Covina to those who spent less than the monthly allowance toward health insurance coverage, as well as compensation paid in lieu of holidays.

“Because the remunerations paid to [the plaintiff] and other similarly situated individuals in lieu of health benefits were not made for hours of non-work, or made pursuant to a bona fide benefits plan, they must be included in the ‘regular rate’ of pay for determining overtime compensation as required by the [Fair Labor Standards Act],” the case states.