This week, employees of “Cake Man,” a celebrity baker in Brooklyn, filed an overtime pay lawsuit in United States District Court for the Eastern District of New York. The lawsuit claims that 15 employees are owed at least a half million dollars in overtime pay over a six year period.
The obligation to pay overtime under New York law and the federal Fair Labor Standards Act is absolute. An employer does not satisfy its obligation to pay time and a half for all hours worked over 40 in a workweek by rewarding employees with bonuses. Yet, that appears to be precisely what many employers, particularly smaller ones, do.