BOP NEWSLETTER • January 2023

Krispy Kreme Agrees to $1M Settlement Regarding Overtime Violations

The doughnut chain failed to include monthly bonuses in some workers’ regular rates of pay, the Department of Labor said. As a result, Krispy Kreme paid overtime at lower rates than required by the Fair Labor Standards Act.

As a reminder, overtime must be paid at a rate of one and one-half times the employee’s regular rate of pay. The formula to compute the regular rate is:

• Total compensation in the workweek (except for statutory exclusions) ÷ Total hours worked in the workweek = Regular Rate for the workweek

For more information on calculating the regular rate of pay, please visit: https://www.dol.gov/agencies/whd/fact-sheets/56a-regular-rate

For more guidance on overtime in general, please visit: https://www.dol.gov/agencies/whd/overtime