San Jose, CA – Cupertino Electric Inc., a prominent electrical engineering and construction firm, has paid $1.4 million after the U.S. Department of Labor uncovered significant violations of the Fair Labor Standards Act (FLSA).
Over 2,600 Workers Impacted
According to the Department’s Wage and Hour Division, the San Jose-based company failed to properly calculate overtime wages for more than 2,600 employees. Investigators discovered that Cupertino Electric did not include non-discretionary bonuses—such as production or performance-based incentives—when determining overtime pay rates.
As a result, the company shortchanged workers on overtime compensation, prompting federal enforcement action. In response, Cupertino Electric paid both back wages and fines, totaling $1.4 million.
Longstanding Industry Presence
Cupertino Electric has a wide footprint, having built electrical systems for private and public sector clients across multiple states. While the company has maintained a reputation for large-scale infrastructure work, this case reveals systemic issues in its payroll practices.
DOL Reinforces Employer Responsibilities
“Employers must accurately calculate overtime pay and include all required compensation, such as bonuses, when determining the correct rate,” said a representative from the Department of Labor. “Failure to do so violates workers’ rights and creates unfair labor conditions.”
This case serves as a reminder that even large firms are not exempt from compliance. Employers must regularly audit their payroll systems to avoid wage violations that could result in costly penalties.
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