It is not yet clear how many hourly employees may be included in the class of similarly situated workers. Abbott Labs employed roughly 35,000 workers in the U.S. in 2024. Publicly available information does not break that statistic down into salaried and hourly categories, but the number of affected workers could clearly be substantial.
A big deal for Abbott Labs?
Dominguez worked as a non-exempt hourly warehouse associate at Abbott’s North Chicago K-2 Complex from April 11, 2021, through June 3, 2025, as an hourly warehouse associate. Her most recent base hourly rate of pay was $24.40. However, in addition to the base rate, Dominguez also received various forms of routine, non-discretionary compensation, including periodic award pay.
For example, during the pay period from November 11, 2024, through November 17, 2024, Dominguez worked 42.25 hours at a base hourly rate of $24.17, with an overtime rate of $36.25 and gross earnings of $1,048.28, including $76.45 in award pay. She alleges that her overtime pay was miscalculated because it did not include the award pay.
Abbott’s failure to include the $76.45 in overtime calculations may not seem like a big deal to some observers. However, given the potential size of the class and, on the assumption that Dominguez’s experience is typical, Abbott could be looking at considerable financial liability. The reputational damage is an additional factor for the company to consider.
The lawsuit seeks:
- an accounting of all the compensation she and others similarly situated are owed;
- a declaratory judgment that the practices complained of are unlawful under the FLSA;
- full backpay and an equal amount in liquidated damages;
- pre-judgment and post-judgment interest;
- an award of costs and expenses including reasonable attorneys’ fees; and
- an award of a service payment to the named plaintiff.
FLSA
Section 7(a) of the FLSA sets forth guidance about how employers must calculate overtime compensation for wage earners. Employers must pay overtime once an employee works more than 40 hours in a workweek and in certain other situations. It applies to the hours worked over the 40-hour threshold and requires that those extra hours be compensated at one and a half times the employee’s regular rate of pay.
The tricky part of the calculation is not the math; it’s determining what the phrase “regular rate of pay” means.
An employee’s regular pay rate is more than just their hourly wage or weekly salary. It includes all compensation the employee earns in that workweek.
Some types of compensation that count towards an employee’s regular rate of pay are:
- nondiscretionary bonuses;
- commissions; and
- shift differentials.
The legal presumption is generally that all forms of payment must be included in the calculation unless specifically excluded under the law. For example, discretionary bonuses, gifts, expense reimbursements, and payments for vacation, holidays, or sick leave are not included because they are not tied to hours worked or productivity.
Employers who only consider an employee’s base wage or base salary expose themselves to lawsuits, back-pay orders, employee attorney’s fees, and liquidated damages that double the amount of pay owed.
READ MORE CALIFORNIA UNPAID WAGES LEGAL NEWS
When employers miscalculate overtime payments or fail to pay overtime altogether, federal courts will order them to pay the unpaid wages. In most cases, employers will also owe liquidated damages in the same amount, which doubles liability. Federal courts can also order employers to pay the employee’s attorney’s fees and litigation costs. When overtime violations appear to be repeated or willful, the Department of Labor may also impose civil money penalties.
What happens next?
The allegations of the complaint seem to be well within the generally understood FLSA requirements about overtime calculation. However, Dominguez v. Abbott Laboratories is still in its earliest phase. Abbott will likely file a motion to dismiss, which will likely be denied by the court. The process of discovery, during which both sides will exchange substantial information, will follow.
It is only then that it will be possible to assess the strength of Dominguez’s claims. The burning issues will be the size of the class, the total amount of the alleged underpayment, and any evidence that Abbott’s behavior was willful or systematic. Settlement negotiations will probably begin in earnest at that point.
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