Union Bargaining Agreements Likely Cannot Waive Overtime Pay Rights

When casino banquet servers asserted claims that they were due overtime pay under Nevada’s state wage and hour law, the casino pointed to the union Collective Bargaining Agreement (“CBA”) which provided for a different compensation method and claimed that no overtime pay was owed. The Ninth Circuit Court of Appeals disagreed.

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Employees Paid on a Piece Rate Basis are Entitled to Overtime

Employers tend to assume that by paying employees on a “piece rate” basis, they are not obligated to pay overtime when the employees work over 40 hours in a workweek.  However, a recently filed class action overtime suit illustrates the dangers of making that assumption.  The suit alleges that Wave Comm, an Arizona-based cable company, failed to pay overtime to its cable installation technicians.   

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