While California labor and employment laws offer employees protections when it comes to overtime pay and mandated meal and rest periods, California employers often violate these state laws. A recent class action lawsuit filed against Interstate-RIM Management Company LLC alleges that the company failed to include a non-discretionary incentive pay when calculating overtime.

Interstate-RIM is one of the largest hotel management companies in the United States.

Understanding the Class Action Suit Against Interstate-RIM

Proposed Class Action Lawsuit Alleges Lack of Overtime Incentive Pay

The overtime pay lawsuit against Interstate-RIM Management Company LLC holds that the company pays their non-exempt workers performance-based, non-discretionary incentive pay. Nancy Ramirez, the lead plaintiff in the proposed class action case, also alleges that Interstate-RIM did not include the incentive pay when overtime hours were calculated.

For the purposes of calculating overtime, incentive pay should have been reflected in non-exempt workers’ hourly rates. According to California overtime law, missed meal breaks should have also been counted as extra working hours, thus qualifying as overtime.

In addition to the company’s failure to compensate employees for their overtime hours, the unpaid overtime class action suit alleges that Interstate-RIM also failed to establish a California employment law-mandated internal policy to establish uninterrupted 30-minute meal periods for employees.

Interstate-RIM Employees Were Allegedly Forced to Work Off the Clock

The class action suit also alleges that the hotel management company would require non-exempt employees to consistently work while off the clock. Interstate-RIM allegedly forced workers to clock out, and then answer text messages and emails on behalf of the employer without compensation.

Complaints against Interstate-RIM include violations of California labor code such as unfair competition, failure to pay overtime wages, failure to reimburse workers for required expenses and failure to provide accurately itemized statements.

Ramirez wishes to represent all non-exempt workers who were employed for Interstate-RIM at any time during the period beginning four years before the complaint filing date (June 24, 2016) and ending on a date that will be determined by the Court. The amount of damages sought is under $5 million.

Article adapted from Proposed California Overtime Class Action Names Hotel Management Company via Lawyers and Settlements

California Overtime Laws: For Further Reading

  • California Department of Industrial Relations: Overtime
  • California Overtime Laws: What Exempt and Nonexempt Employees Should Know
  • California Overtime Violations via Lawyers and Settlements
  • California Wage and Hour Laws: Common Questions

Is your employer violating California overtime laws? If you feel your employer has failed to pay you for working overtime, our California overtime law attorneys may be able to help you file a complaint. Contact us today for a free consultation.