Tag Archives: overtime backpay

Cash Payments Made To Employees In Lieu Of Health Benefits Must Be Factored Into Overtime Pay Under The FLSA

In Flores v. City of San Gabriel, the Ninth Circuit held that cash payments made by the City to its employees in lieu of healthcare benefits must be factored into the base pay that is used to calculate overtime pay (1.5 times base pay). The City provided a “Flexible Benefits Plan” to its employees, under which it gave employees a designated monetary amount to aid in the purchase of healthcare (vision, dental, and medical) benefits. Employees had the choice to obtain medical benefits through the City or receive cash instead. The cash was added to the employees’ paychecks as a …

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