No, that is not a typo. While most people understand that overtime pay is time and a half, Payless doesn’t seem to. It was paying overtime according to a “half time” calculation. While it discontinued this practice in December 2012, it failed to compensate its employees for the back pay it owed.
The law firm of Winebrake & Santillo, LLC has filed a lawsuit in Pennsylvania seeking to recover the unpaid overtime wages for Payless’ Pennsylvania workers. The Plaintiff in the case is Barbara Warcholak and the case is currently pending in the Court of Common Pleas of Philadelphia County.
Believe it or not, this practice of paying 1/2 time for overtime is more widespread than you’d think. Office Depot has been sued for this as well as other companies. There is some support for this method of overtime pay in the federal regulations, but many states have made it illegal.
In Connecticut, there is a mercantile wage order which requires that employers “establish a regular hourly rate” for their employees. This regulation might mean that the 1/2 time pay scheme, which pays workers on a salaried basis, plus 1/2 time premiums for overtime, is illegal here in Connecticut. Payless employees in Connecticut might be able to take advantage of this regulation.