US Department of Labor v. Fire & Safety Investigation Consulting Services, LLC, No. 18-1632 (4th Cir. 2019)Annotate this Case
A consulting company and its owner appealed the district court's determination that the company violated the Fair Labor Standards Act (FLSA) by failing to pay certain employees proper overtime compensation. The Fourth Circuit affirmed the district court's judgment holding that the payment system violated the FLSA because it used a blended rate that functioned as the actual hourly rate for all hours worked, regardless of whether those hours were overtime or non-overtime. The court noted that, upholding such a scheme and accepting the company's retroactive justifications would undercut one of the fundamental purposes of the FLSA: ensuring that employees are adequately paid for all overtime hours.