Overtime Pay

[pute62]

My youngest son started a job and seems to be having some problems with his employer paying overtime. He works 48hrs one week and 32hrs the next. He's paid every two weeks so he would have 8 hrs of overtime on every check. His employer has told him that its not overtime because they run a 2 week pay period. When my son called him on that they turned around and said his overtime would be paid in, "in store credit". This place is a furniture consignment shop with things my son would have no use for. I was always under the impression that anything over 40 hrs a week was to be paid at time and a half. Am I wrong or is this just some shady dealings?

 

[Double T]

If they pay on two weeks, then anything of 80 I believe technically has to be paid as overtime.

People in hospitals do this all the time.

 

[jylederman]

It is shady. They should pay 1.5x for anything over 40 hours. It doesn't matter f they pay every two weeks. If they're still be a pain I would submit a complaint to the stage wage and labor board.

 

[Moparracer89]

Its shady and wrong but unfortunately hes in a pinch. Small businesses get away with a lot of this. Place I work refuses to pay overtime on payroll, instead they pay straight time in cash.

 

[hornadylnl]

I've worked jobs where it had to be over 80 hours in 2 weeks to get overtime. My job used to be anything over 8 hours in a day was overtime. They changed it to over 40 hours.

If it's that bad, quit.

 

[Hotdoger]

They owe him 8 hours of overtime pay, not instore credit.


Overtime Pay Law – Calculating Overtime Pay - Rights to Overtime, Minimum Wage, Wage and Hour Law, Fair Labor Standards Act, FLSA

Automatic Time Clocks Underpay Overtime Unpaid Wage Claims Investigations RM Legal Group Employment Claims Rowdy Meeks Legal Group LLC | RMLegalGroup.com

 

[rockhopper46038]

It is shady. They should pay 1.5x for anything over 40 hours. It doesn't matter f they pay every two weeks. If they're still be a pain I would submit a complaint to the stage wage and labor board.

There ARE exemptions to this rule, although at first glance it does not appear that they would apply to the OP's son.

EDIT: One such exemption appears to be if the business does less than $500,000.00 in annual volume.

2nd EDIT: Here's some information on when exemptions to the "40hr a week" apply...

http://www.dol.gov/compliance/guide/minwage.htm

 

[Miketodd]

It depends on how they are set up. I worked at a Hospital in Florida where the pay was every two weeks. You had to go over 80 hours in order to get OT. You could work 60 hours one week and 20 the next, but since you didn't go over 80 in a two week period, you weren't paid OT.
Where I work now in Indiana, we are on a 40 hour per week scale but get paid every two weeks. Now anything over 40 hours in a week I get paid OT.

 

[PMR]

Google "Exempt Employee vs. Non-Exempt Employee overtime" and you will find all the info you need.

If I remember correctly it goes on a weekly basis regardless of your pay period and if you are a non-exempt employee you can request cash instead of perks or comp time...I was in his shoes years ago.

 

[bobbittle]

Indiana dept of corrections runs a similar schedule, you actually work 84 hours every 2 weeks, all at straight time (4x 12hr days one week, 3x 12hr days next week). They do make you sign a form/waiver acknowledging this before you are hired though.

 

[BehindBlueI's]

Am I wrong or is this just some shady dealings?

Shady. He can always document it and complain to the state Dept. of Labor.

"Overtime

An employer must pay a non-exempt employee a minimum of 1½ times their base wage rate for all hours worked over forty (40) in a workweek. There is no federal law limiting the number of hours an employer can require a non-exempt employee to work so long as they pay overtime. Like with minimum wage rates, some states have more stringent overtime laws.
"

Fair Labor Standards Act (FLSA) | Employment Law Handbook

or sue:

Gibbons Jones Indiana Employment Lawyers » Overtime Pay Law

 

[Cameramonkey]

He's getting stiffed. State and federal law is measured PER WEEK. Doesnt matter if you are paid weekly, bi-weekly or hell, even monthly.

"The Indiana Overtime law (called the Indiana Minimum Wage Law) mirrors the Federal Fair Labor Standards Act (FLSA) in many ways. Just like the FLSA, the Indiana overtime law requires that non-exempt employees receive overtime pay equal to 1.5 x their regular hourly pay for any hours worked over 40 in a week (overtime)."

Indiana Overtime pay lawyer, Indianapolis, Evansville, Ft Wayne, Gary, Hammond,Terre Haute, New Albany, South Bend, Indiana

 

[Hotdoger]

It depends on how they are set up. I worked at a Hospital in Florida where the pay was every two weeks. You had to go over 80 hours in order to get OT. You could work 60 hours one week and 20 the next, but since you didn't go over 80 in a two week period, you weren't paid OT.
Where I work now in Indiana, we are on a 40 hour per week scale but get paid every two weeks. Now anything over 40 hours in a week I get paid OT.

Generally, for purposes of minimum wage and overtime payment each workweek stands alone; there can be no averaging of 2 or more workweeks.

Overtime Pay Law – Calculating Overtime Pay - Rights to Overtime, Minimum Wage, Wage and Hour Law, Fair Labor Standards Act, FLSA


There are many exemptions. I highly doubt the OPs consignment shop operators under one.

 

[Hotdoger]

There ARE exemptions to this rule, although at first glance it does not appear that they would apply to the OP's son.

EDIT: One such exemption appears to be if the business does less than $500,000.00 in annual volume.

2nd EDIT: Here's some information on when exemptions to the "40hr a week" apply...

http://www.dol.gov/compliance/guide/minwage.htm

I did not see the "if the business does less than $500,000.00 in annual volume." exemption. can you point it out where you read it?

Oh I found it but don't think it applies here:Employees of firms that do not meet the $500,000 annual dollar volume test may be covered in any workweek when they are individually engaged in interstate commerce, the production of goods for interstate commerce, or an activity that is closely related and directly essential to the production of such goods.

 

[ZombieApocolypse]

We work 9/80 meaning we work 9 hour days ( 8 hours the first friday) and get every 2nd friday off. Though if we get more than 9 hours a day we get overtime for that, and can "flex" our schedule to make up missed time so we dont need to use vacation if we miss a day.

Its a pretty sweet deal, but i would have to say it should be up to the employer if they want to pay OT after 40 or 80 hours, though offering "store credit" is trash.

 

[forgop]

That's nothing. My employer has what they seem as not being mandatory for education, meetings, and committees as hours that don't count towards the 40 hour/week mark. You could have many 40+ hour weeks but there's no OT cuz of that, but good luck come review time because you're not completing education stuff or participating in a committee.

 

[Denny347]

Overtime??????? What is that? We get trade time.

 

[Hotdoger]

Overtime??????? What is that? We get trade time.

Well of course, because government does not want to live under the same laws they make.

 

[PistolBob]

I haven't been paid hourly since I was in high school...1976. Back then OT wasn't paid until 50 hours a week.

 

[Tactical Dave]

I worked for a place that was not a small business and they changed the shift schedules that that you worked 50 hours (10 hour shifts) but that 5th day was Monday so it was on the next pay period/week so you worked 50 hours straight but it was all straight time.

Most guys worked so much overtime (some over 100) a week so it did not mater to them but the guys that did not work much OT it did not go over well.