Home Depot Hit With Class Action Lawsuit Over Incentive Bonuses

A recent lawsuit filed against home improvement retailer Home Depot claims that the company has committed wage and hour violations and failed to properly compensate countless employees by failing to factor incentive bonuses into overtime wage rates.

About the Home Depot Incentive Bonuses Lawsuit

Although incentive bonuses may seem like something no employee would complain about, these bonuses may actually decrease the amount of money that a worker earns if their employer does not properly calculate their overtime wages separately, in violation of federal and California labor laws.

Plaintiffs Donnie B., Araceli B., and Jeremy B. filed their lawsuit against Home Depot in July 2020 on behalf of themselves, as well as other current and former Home Depot employees. According to the plaintiffs, Home Depot committed several wage and hour violations that infringed upon the rights of many employees.

Employees claim that the company failed to provide accurate and itemized wage statements at the end of each pay period. Under California law, employers are required to give workers wage statements with information including their gross and net wages, total hours worked, total piece-rate units earned, all deductions, the dates included in the statement, the name of the employee, the name and address of the employer, and all hourly rates of pay that were in effect during the pay period, as well as the number of hours worked at each rate.

Employers who fail to include all of the required wage and hour information may make it difficult for employees to determine whether they have been properly compensated for all hours worked in a given pay period, and whether their employer has correctly calculated their rate of pay.

In addition to allegedly failing to provide accurate wage statements, Home Depot has also been accused of improperly calculating overtime pay rates for employees who have worked in excess of 40 hours a week, or 8 hours a day. According to California overtime laws, employees who work additional hours are entitled to a rate of pay of one and a half times their usual rate of pay for these hours. In calculating this increased pay rate, employers must factor in not only the employee’s hourly wage, but also any additional pay, such as stipends or incentive bonuses.

Under Home Depot’s incentive bonus plan, many employees are eligible to receive a cash award of at least $100 twice a year, as long as they are in good standing with the company.

The plaintiffs claim that Home Depot failed to include the value of these incentive bonuses in their regular rate of pay, resulting in the calculation of a lower overtime wage than they were owed. Plaintiffs allege that Home Depot uses a federal formula to reallocate bonuses back over relevant earnings periods and ignores California’s more expansive overtime protections.

The plaintiffs also claim that they were denied meal and rest break compensation, which is owed to California employees who are not able to take their owed meal and rest breaks.

As it can be confusing to navigate employment laws in California, as they are more strict than federal laws. Speaking with an experienced attorney may make it easier to determine whether you have been subject to wage and hour violations. Home Depot employees who have received improperly calculated overtime wages may qualify to file a wage and hour claim or join a class action lawsuit against their employer. Employees of other companies who believe they have had their employment rights violated may be eligible to speak with an attorney and potentially file their own class action lawsuit.

Victims of wage and hour violations, whether exempt or non-exempt employees, who pursue litigation may be able to recover reimbursement and additional compensation for themselves and other similarly affected workers.

The Home Depot Incentive Bonuses Lawsuit is Case No: 3:19-cv-01766-AJB-AGS, filed in the U.S. District Court for the Southern District of California.