Legal Question in Employment Law in California

Company not paying overtime

Sometimes our company does not pay overtime to employees because the employees make a special deal with the company to take off early later in the week, etc. However, the employees are not even getting the benefit of the time and a half rate that they would get if they are paid overtime or take off comp time. I am the HR Administrator and have spoken to payroll and management about this issue. However, nothing has changed. What would be the best way to report this without jeapordizing my job? Also, what agency would you recommend I report this to?


Asked on 8/04/06, 11:33 am

3 Answers from Attorneys

Michael Kirschbaum Law Offices of Michael R. Kirschbaum

Re: Company not paying overtime

In California, the proper agency is the Division of Labor Standards Enforecemnt, of the Dept. of Industrial Relations. They have a website at www.dir.ca.gov.

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Answered on 8/10/06, 7:28 pm
JEB Pickett Wynne Law Firm

Re: Company not paying overtime

The DLSE is the proper source for reporting such information. Prior to making any report, you document your concerns, in writing, to your employer for your own protection. The DLSE office locations can be found at http://www.dir.ca.gov/dlse/DistrictOffices.htm

Also, providing comp time is illegal, regardless of any alleged "agreement."

Disclaimer: This response and any materials or content provided by this response or through this web site or the www.wynnelawfirm.com website are for general informational purposes only and should not be relied on or considered as legal advice. If you seek legal advice or representation by Wynne Law Firm, you must first enter into a formal agreement. Under no circumstances does this informational response, directly or indirectly, including, without limitation, any correspondence by any means to or from Wynne Law Firm, establish or intend to establish an Attorney-Client relationship between you and Wynne Law Firm.

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Answered on 8/10/06, 9:23 pm
Thomas Pavone Pavone & Cohen

Re: Company not paying overtime

California law allows employers to provide make-up time for employees who must be absent due to personal reasons. This make up time must be used within the week in which the time off is taken and may be paid at straignt time rates, up to a maximum of 3 hours in one day. The request by the employee must be in writing

Thus if an employee requests 4 hours of to leave early on Friday, (note, it must be the employees' request, not the employers requirement)he can work an additional 3 hours on one day and 1 hour on another day, and not be subject to overtime.

If this is what is going on, you should not report to any agency. Rather, you should carefully examine your policies and practices to make sure you are in compliance with state law.

If the employer is not following the procedure required for make up time, you should do a self audit and advise management that failure to pay overtime when due will carry penalties that may exceed the wages due in some instances. Arranging payment before employees leave the employ of the company will in most cases prevent penalties.

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Answered on 8/16/06, 5:43 pm


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