CRA’s Labor & Employment consultants were retained on behalf of a client in the healthcare and transportation industries to conduct a comprehensive audit of regular rate-of-pay practices in response to allegations of underpayment related to overtime, meal and rest premiums, and sick time under California state law. The aim was to assess compliance with California wage and hour regulations.
Our team collaborated closely with the client to understand the complexities of the pay structures governed by the current and historical collective bargaining agreements relevant to this population. This included analyzing overtime and double-time premiums, shift differentials, bonuses, and other incentive payments. We also reviewed the client’s timekeeping and payroll systems to understand how these payments were recorded, calculated, processed, and reported.
To perform this analysis, we integrated multiple data systems and evaluated a wide range of bonus and incentive payments with varying earnings periods. By comparing actual payments to legally required amounts, we found that our client typically overpaid overtime and sick pay due to using higher pay rates than were necessary under wage and hour law.
The findings were used in mediation, ultimately contributing to a favorable settlement outcome for our client.
