Client Successes

Howard Golds and Elizabeth A. Han represented employer in lawsuit challenging its overtime formula.

Best Best & Krieger LLP Partner Howard Golds and Associate Elizabeth Han secured a ruling from a California Appellate Court that a business client’s formula for calculating an employee’s overtime rate on flat sum bonuses paid in the same pay period in which they are earned is lawful.

Dart Container Corporation of California was sued in Riverside Superior Court by a former employee, who sought class action status, claiming that Dart did not properly compute bonus overtime under California law. Dart’s written policy is to pay a $15 attendance bonus to employees who attend their regularly-scheduled weekend shift. Dart included the attendance bonus when calculating the regular rate for overtime purposes, but the former employee claimed that Dart used an incorrect formula in doing so.

When the Superior Court dismissed the case in favor of Dart on summary judgment, the former employee appealed. The Fourth District Court of Appeal published an opinion upholding the lower court’s ruling. The Court of Appeal agreed with the BB&K team’s argument that Dart’s overtime flat sum bonus formula complies with federal law, which is lawful because there is no California law on point.

To read the full opinion in Alvarado v. Dart Container Corp. of California, click here.