A class and collective action complaint was filed against Kestrel Engineering and Kestrel Energy (as joint employers) by a former Inspector who worked in several states (Pennsylvania, Ohio and Texas) and was paid according to a day-rate pay scheme. The case seeks to recover unpaid overtime wages on behalf of all current and former Inspectors employed by Kestrel who: 1) were paid a set daily rate for each day worked (a day-rate) 2) worked over 40 hours per workweek 3) did not receive overtime pay for hours over 40 per week and 4) were employed within the U.S. in the past 3 years.
The collective action is brought under the federal law governing overtime pay, the Fair Labor Standards Act (FLSA), which covers employees in every U.S. state. The class action claims are brought under the state overtime pay laws in Ohio – the Ohio Minimum Fair Wage Standards Act and the Ohio Prompt Pay Act and under the state overtime pay laws in Pennsylvania – the Pennsylvania Minimum Wage Act. These two claims cover all Inspectors who performed work for Kestrel in Ohio and/or Pennsylvania.
Although the use of a day-rate pay scheme is permitted by law, it does not relieve an employer from the obligation to pay overtime wages to “non-exempt” employees. For more information and a video on how the overtime pay laws apply to day-rate workers and how overtime pay should be calculated for such workers, visit our Overtime Pay Laws for Day Rate Workers page.