Sherwin-Williams Excluded COVID-19 Bonuses from Assistant Managers’ OT Pay, Lawsuit Alleges

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A proposed collective action claims The Sherwin-Williams Company failed to include COVID-19-related bonuses in the calculation of assistant managers’ overtime wages.

The plaintiff in the case out of Ohio says he worked as an assistant manager for the paint and coating manufacturer between July 2008 and May 2020. At all times during his employment, the plaintiff was paid an hourly wage plus quarterly bonuses based on store sales, productivity and expenses, the lawsuit states. Starting in March 2020, the plaintiff also began to receive COVID-19-related bonuses for each hour he worked, according to the suit.

Per the case, the plaintiff often worked more than 40 hours per week ordering inventory, managing associates and assisting customers. Moreover, the man says he was often forced to work off the clock for one to two hours each week “in order to meet performance goals and reduce expenses” and to help unload freight given he was the only employee who could operate a forklift.

According to the suit, Sherwin-Williams failed to pay the plaintiff and other workers proper time-and-a-half overtime wages in that their bonuses and off-the-clock work were not taken into account when calculating OT pay. Under the Fair Labor Standards Act, non-discretionary bonuses must be included in an employee’s regular rate of pay for the purpose of calculating overtime wages, the lawsuit says.

The plaintiff alleges Sherwin-Williams “knew or showed reckless disregard” for whether its actions violated federal wage and hour laws, adding that the defendant’s pay policies were the same at all of its locations.

The case looks to represent all hourly paid Sherwin-Williams employees who earned a bonus in connection with any work performed during a week in which they worked more than 40 hours within the past three years.

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