I'm not having any luck getting the PDF on my system. That window just keeps freezing. I'll try again later and let it sit overnight and think about it.
But I wanted to interject the following:
in addition to the foregoing misrepresentations, InfoSpace's financial statements had been overstated as a result of Defendants' refusal to pay its employees overtime they were legally owed.
If I remember correctly, they initially over-estimated how much they'd have to pay out, as did I.
I initially thought the formula was to take one's annual salary and divide it by 2080 to get the hourly rate, then take the overtime, multiply that by the hourly rate, then multiply that by 1.5 (time and a half).
Not even remotely the case.
The formula is:
Rate=Annual salary divided by hours worked (including OT)
OT Amount=Rate times .5 times OT hours
So, according to what I thought the formula was if your "salary" were $41,600 (for simplicity's sake), your hourly rate would calculate to $20 based on a 40-hour workweek. Or $30 per hour for overtime (time and a half).
Now if you worked 46 hours per week every week for a year, you'd think that's $180 in OT pay for each of 52 weeks, giving a total of $9,360.
But that's not the way the formula works. In reality, that pay rate and that OT scenario works out thusly:
Salary ($41.6k) divided by total hours worked (2392) equals $17.39 per hour. That's your hourly rate.
Multiply your hourly rate ($17.39) times OT hours (6) times weeks (52) and you get $5426. That's what the uncompensated OT hours would be worth at straight pay.
But we're not done yet. One might say "Darned tootin'! OT doesn't pay straight pay, it pays time and a half!". Well, I thought so anyway.
But no. See, what really happened is that the company *already paid you for the straight pay part*. They paid you "time" but owe you "and a half". How can that be? Because though you thought you were making $20 per hour, you were really only making $17.39 per hour and the company already paid you $17.39 for each of the hours you worked, including overtime. Total amount due: $2712. Not $9360.
The more hours of OT you put in, the lower your hourly rate really was. If you were paid as a $41.6k salaried employee and worked no overtime, you were paid $20 per hour. If you worked, say, 60 hours per week, your pay rate was actually $13.33 per hour. The more you worked, the less you were worth. <g>
I'm sure INSP had the same misunderstanding about how it worked, so that's why they initially overestimated the amount of OT they had to pay.
It subsequently revealed in short order that the merger with Go2Net was a failure and it laid-off many of the 500 Go2Net employees.
I've often wondered but have never been able to find out just how many of the laid-off people were Go2Net employees. Anecdotal evidence suggested Go2Net employees were the overwhelming majority, but I was mostly in contact with Go2Net people, so that's not reliable evidence, even as far as anecdotal evidence goes.
The general consensus, though, was that the layoffs were handled as if Go2Net were an acquired company; not a merged-with one.
I also heard (but don't know for sure as I was a remote employee and wasn't told of my layoff until a day or two after the fact) that the manner in which everyone was laid off was the sneakiest, most vicious, unfeeling manner I've ever heard of. |
