Peloton Interactive, Inc., a stationary exercise bike company, was ordered to pay $80,000 in overtime pay, back wages and damages to a Production Assistant for wage violations.
According to the lawsuit, Peloton was not paying a Production Assistant overtime and spread of hours pay in violation of state and federal overtime laws. The Production Assistant alleges he had been incorrectly classified as a worker ‘exempt’ from overtime pay by Peloton. He claims that he started working as a technician and was eventually promoted to Production Manager, a position that would be exempt from overtime laws, earning a set salary. The employee argued that, though his title and pay changed, his duties were the same as when he was a Technician in 2014. Because of this, he argued, Peloton was violating the Fair Labor Standards Act (FLSA) and the New York Labor Law (NYLL) by failing to pay him one and half times his regular hourly rate for hours worked over 40 hours in a work week. They also failed to pay him spread of hours pay, in the form of one extra hour of pay at the minimum wage for shifts that exceeded 10 hours a day.
There is a common misconception that if an employee is paid on a salary, overtime pay is not required. Only a limited number of employees are “exempt” from the requirement of overtime pay under the FLSA and the NYLL. In order to qualify as an “exempt” job under these laws, an employee has to fit within the administrative, executive, or professional exemption.