Overtime Laws

[geekgirldany]

I have a client in the construction business. He is not wanting to pay his employees for the time it takes to drive to and from construction sites. Employees use company vehicles. He said they are driving so much they are accumulating overtime and it is costing him alot.

I told him I was sure it was against the overtime law what he is talking about doing. I wanted to ask you all if there is another way he could do this.... I was thinking about comp time. Instead of paying overtime they can get time for days off within the same pay period.

Found this on a labor law blog:

http://blog.laborlawtalk.com/2010/04/29/georgia-comp-time-2/

[taxmandan]

I have a client in the construction business. He is not wanting to pay his employees for the time it takes to drive to and from construction sites. Employees use company vehicles. He said they are driving so much they are accumulating overtime and it is costing him alot.

I told him I was sure it was against the overtime law what he is talking about doing. I wanted to ask you all if there is another way he could do this.... I was thinking about comp time. Instead of paying overtime they can get time for days off within the same pay period.

Found this on a labor law blog:
http://blog.laborlawtalk.com/2010/04...a-comp-time-2/

That's based on state labor laws. Our state forbids comp time off in lieu of overtime pay for the private sector so that won't work here. He needs to check with his state labor dept. to find out the details of paid time and unpaid time relating to job activity.
I don't suggest you do so for him, if he misunderstands the bureaucrats that's his problem, if he misunderstands you he'll blame you. Some contractors get this info more quickly at the Lowe's order desk from the other knowledgeable contractors.

[geekgirldany]

Thanks so much.

After reading a few other sites on overtime it does vary from state to state. I'll give him the DOL phone number to find out for himself. I certainly don't want it coming back on me.

[AJsTax]

Most of what

you are asking is covered by Federal Law also.
Federal Fair Labor laws forbid the use of comp time for private sector employees.
The labor law is quite extensive, but there is a wealth of information with different fact sheets for most types of businesses available on the website :

http://www.dol.gov/compliance/laws/comp-flsa.htm

There are specific rules to cover the driving time in company vehicles, waiting time, etc. and each business is different, each state does have their own rules with the Federal as being the minimum standards and MANY times it requires a lawyer versed in labor law to get an opinion and if you don't like that one ask another you might get a different opinion. (kinda sounds like tax preparers, huh?)
Nothing is easy anymore, is it?
As far as the driving time from the shop to the job in the company vehicle, it usually considered time on the job and must be counted towards overtime. But there are always circumstances and exceptions to the rule.


Additional information:
from Fact Sheet #1- DOL website (referenced above) (gee, I wonder why the construction industry got #1??)
These all violations under the FLSA :

"Typical Problems

(1) Failure to record all hours actually worked to include time spent working before or after the shift. (2) Shorting of hours by using terms such as down time or rain delay. (3) Failure to compensate for meal breaks where the employee is not completely relieved of all duties to enjoy uninterrupted time for the meal. (4) "Banking" of overtime hours or payment of overtime in the form of "comp time". (5) Failure to combine the hours worked for overtime purposes by an employee in more than one job classification for the same employer within the same workweek. (6) Failure to segregate and pay overtime hours on a workweek basis when employees are paid on a bi-weekly or semi-monthly basis. (7) Failure to pay for travel from shop to work-site and back. "

That is Federal Law and state law must be at least as strict. Now there are qualify events, such as gross income to identify who is subject to the FLSA.
Lots of good reading on that site.

[Jiggers]

Overtime and Minimum Wage Laws

I refrain from advising clients about Overtime and Minimum Wage Laws.

I am not educated enough to understand the complexity of these Laws.

I know a local CPA that tried to advise a now ex client about these and ended up settling with the now ex client for $5,000 for giving the wrong advice.

The same applies to sales tax law in my state. More complex than the IRS Code!

[taxxcpa]

Labor laws

I think it is always best to refrain from expressing an unqualified opinion on something outside of your area of knowledge. I might tell someone what I think, but would explain that I am only guessing and that someone else should be contacted for guidance.

[geekgirldany]

AJ I appreciate your post with the detailed information. I believe I found this info on the GA DOL Site.

Yes I agree, when speaking to the client when he first asked I told him I was pretty sure he would have to pay overtime. I told him I understood where he was coming from about the driving but that was part the employee's job. He offered various scenarios of trying to avoid overtime pay. To all I said "I believe you still must pay overtime but I will look into it."

I sent an email and basically told him to contact the GA DOL and gave him a number to call along with the websites. I also added that I could not give a yes or no answer as it was beyond my knowledge.

If I remember correctly did not Walmart get into trouble about not paying overtime?

[veritas]

Yes

If I remember correctly did not Walmart get into trouble about not paying overtime?

as did Nordstrom's

[S T]

Labor Laws and Overtime

I think it is important that if we are "servicing and processing payroll" for our clients, that we need to know the "labor Laws" Minimum Wage, Overtime, etc

I process payroll for several of my clients and issue payroll checks - so I try to give them the best information I can regarding those issues, I also represent them at Labor Board Hearings.

If processing ( accounting entry only) after the fact - not our responsibility - but if processing payroll - I believe it would be!

Otherwise the client should contract with an outside payroll service such as ADP, paychecks, etc and have them handle the issues.

Sandy