Wage and Hour Division (WHD)

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ESA-WHD New Release: [07/02/2001]
Contact Name: Brad Mitchell, Juan Solano
Phone Number: (312) 353-6976
Release Number: V-2001-421

Best Buy Inc., Eden Prairie, Minn., Agrees to Pay $5.4 Million to 70,000 Workers for Overtime Pay Violations

CHICAGO — Best Buy Inc., a national chain of consumer electronics stores, has agreed to pay $5.4 million to resolve an overtime pay dispute with the U.S. Department of Labor.

The Department's investigation disclosed that Best Buy Inc. did not pay for all hours worked by approximately 70,000 current and former workers as required by the Fair Labor Standards Act, the federal wage-hour law. Workers were not paid for hours worked on their days off, time worked during meal breaks, hours worked after they punched out on the time clock, and time they waited for managers to unlock doors at the end of the shift. Best Buy also did not keep an accurate record of hours worked by employees.

"Best Buy agreed to comply with the federal overtime pay law in the future and cooperated fully during the investigation," Wage and Hour District Director Denise Scharlemann in Minneapolis said.

Back wages will be paid to workers who were employed at all Best Buy Inc. stores from February 1998 to February 2000.

Best Buy Inc. agreed to take several steps to ensure compliance with the hours-worked provisions of the Fair Labor Standards Act. The company will assign a senior member of its human resources staff to monitor issues related to hours worked by employees and will include specific information on compliance in its management training programs. Best Buy Inc. will also review compliance with the hours-worked provisions during internal company audits of each store, and will communicate an 800 telephone number to all employees to report any concerns regarding payment for work hours.

Best Buy Inc. is headquartered at Eden Prairie, Minn. The firm has more than 400 stores in 41 states which sell consumer electronics, home office products, appliances and software.

The Labor Department's Wage and Hour Division enforces the Fair Labor Standards Act. The law sets a federal minimum wage of $5.15 for most workers and generally requires overtime pay for hours worked over 40 in any workweek. The federal law also requires employers to keep adequate time and payroll records.

For more information about hours worked, overtime pay or any other provision of the FLSA, contact the nearest Wage and Hour Division office listed in your telephone directory or log onto www.dol.gov/esa/regs/compliance/whd/whdfs22.htm

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