DALLAS – An employer learned a costly lesson about skirting federal overtime laws when it gave hollow management titles to overtime eligible employees and paid them salaries for all the hours they worked. Despite the fact that the work they do made them eligible for overtime, Top Golf USA Inc. failed to pay overtime when the employees worked more than 40 hours in a workweek, a U.S. Department of Labor investigation found.
A corporate-wide investigation by the department’s Wage and Hour Division found the Dallas-based company – which operates in 31 states as Topgolf – paid event sales managers and event sales consultants a salary plus commission with no overtime premium after 40 hours in a workweek, in violation of the Fair Labor Standards Act. Division investigators determined the employees did not meet the supervisory requirements and were eligible for overtime. The investigation began with the discovery of violations at its Loudon, Virginia, location.
The division’s investigation led to recovery of $750,063 in back wages for 255 employees in 25 states.
“Employers cannot evade federal overtime requirements by simply giving an employee a manager’s title,” said Wage and Hour Southwest Regional Administrator Betty Campbell in Dallas. “This case should serve as a clear warning and prompt other employers to review their pay practices. Employers uncertain of their obligations should contact their local Wage and Hour District Office or visit our website for guidance on how to comply with federal law.”
Topgolf is part of Topgolf Entertainment Group, a sports and entertainment enterprise, with operations throughout the U.S., in the United Kingdom, Australia, Germany, Mexico and the United Arab Emirates.
For more information about the FLSA and other laws enforced by the division, contact the agency’s toll-free helpline at 866-4US-WAGE (487-9243). Learn more about the Wage and Hour Division, including a search tool to use if you think you may be owed back wages collected by the division.
Workers can call the Wage and Hour Division confidentially with questions – regardless of their immigration status – and the department can speak with callers in more than 200 languages.