Former worker alleges shift premiums and bonuses weren't factored into overtime rates properly
Ohio steel processor faces wage claims over overtime calculations and timekeeping—allegations spotlight HR compliance risks affecting hundreds of hourly workers nationwide.
A former production worker has sued Precision Strip Inc, alleging the steel manufacturer shortchanged hundreds of employees on overtime pay through flawed wage calculations and timekeeping practices that consistently favored the company.
Nathan Diehl filed the case on November 6, 2025, in federal court in Ohio, claiming the manufacturer violated federal wage laws and Ohio labor statutes during his employment from April 2023 through June 2024. The filing seeks to represent several hundred current and former hourly workers at facilities across Ohio, Indiana, Kentucky, Michigan, Tennessee, Alabama and elsewhere throughout the United States.
At the heart of the case are two alleged practices that human resources professionals should find particularly instructive. First, the suit claims Precision Strip paid workers shift premiums and production bonuses on top of their base hourly wages but failed to properly fold those payments into overtime rate calculations. Federal law requires such additional compensation to be included when determining the regular rate of pay for overtime purposes—meaning workers should have received higher overtime rates than they actually got.
Second, the filing alleges the company used a time-rounding system that systematically shaved minutes from employee work hours, even though its timekeeping technology captured exact clock-in and clock-out times. Workers claim they routinely performed pre-shift duties like donning safety equipment that couldn't be taken home, completing shift handoffs with departing colleagues, and other preparatory tasks—but weren't paid until their scheduled start times.
Diehl worked in various production roles including package technician, material handler and line operator at a company facility in Perrysburg, Ohio. Precision Strip, described in the filing as believed to be the nation's largest toll processor of steel, aluminum and copper for automotive and industrial manufacturers, operates multiple facilities across several states.
The case highlights persistent challenges in wage compliance that can trip up even sophisticated employers. Calculating overtime correctly becomes complex when workers receive multiple forms of compensation beyond straight hourly pay. And while time-rounding is permissible under Labor Department rules, systems must be neutral over time—not consistently benefit the employer.
These aren't abstract regulatory concerns. The filing alleges the company knew workers logged overtime hours but failed to pay them properly, characterizing the practices as willful violations. Under federal law, such conduct can trigger liquidated damages equal to the unpaid wages, effectively doubling an employer's liability.
For HR leaders managing hourly workforces, the case serves as a reminder to audit overtime calculations regularly, especially when shift differentials, bonuses or other premium pay are in the mix. It also underscores the importance of ensuring that timekeeping systems accurately capture all compensable work time, including those often-overlooked minutes before and after scheduled shifts.
No court has made findings on the allegations, and Precision Strip has not yet responded to the suit in the Northern District of Ohio.
