I began my employment with this firm approximately 8 weeks ago. There are approximately 15 employees in this, a Subchapter S Corp. During that time, I have encountered several areas that I consider to be "gray" in terms of compliance with established conventions under existing labor law. One such instance is the company policy regarding payment of overtime to hourly employees. Current policy states that O.T. will only be paid for hours worked above and beyond 48hrs. per week. Is this not in violation of the "40 hr." rule and is the company in jeopardy of litigation if pursued by disgruntled employees? Should the ownership, who has established this policy, consider at very least retraction and remedial policy established in it's place?
1 Answer from Attorneys
Re: Overtime Policy
The policy appears on its face to violate the Fair Labor Standards Act which requires nonexempt employees be paid time and half their regular pay for all time in excess of 40 hours per week. No violation would occur unless an employee actually worked more than 40 hours without being paid the overtime premium. Other factors may render the policy legal.It's the employee's call on what to do next.