On January 20, 2017, we filed a lawsuit on behalf of all hourly employees against WECTEC Global Project Services (“WECTEC”). The Complaint alleges that WECTEC unlawfully averaged the number of hours worked by hourly employees each 2-week pay period and did not pay an overtime premium for hours worked in excess of 40 hours in a workweek. According to the Complaint, WECTEC implemented what is sometimes called a 9/80 plan did that did not comply with the Fair Labor Standards Act (FLSA).
Under a lawful 9/80 pay plan, employees work nine days in a two-workweek period, but not more than forty hours in either week. The two-workweek period is scheduled so that employees work four 9-hour days, followed by an 8-hour day. Employees then work four 9-hour days the next week. For a 9/80 pay plan to comply with the FLSA, the workweek must end at the midpoint of the 8-hour day. When implemented properly, the first four hours worked during the 8-hour day fall into one workweek and the second four hours worked during the 8-hour day fall into the next workweek. The result is that the hours worked in both workweeks will not exceed 40.
WECTEC’s workweek violates the FLSA because it begins on a Monday and ends on a Sunday. Under WECTEC’s 9/80 pay plan, the 8-hour day is every other Friday. As a result, employees work 36 hours one workweek and 44 hours the next workweek, but are only paid for 80 total hours of pay, with no overtime premium for the 4 hours of overtime worked during the 44-hour workweek.
The Complaint also alleges that WECTEC violated the North Carolina Wage and Hour Act by failing to pay all wages due on regularly scheduled paydays. We seek to recover unpaid overtime compensation, liquidated damages and other statutorily-permitted relief.