When are you required to pay employees overtime?

[Unregistered]

I have a client that has a disgruntled ex-employee. He is claiming that he was never paid overtime pay. He was a salaried employee. He received the same pay regardless of how long he worked. There were several weeks that he didnt work at all and received the same pay. There were weeks that he worked 60 hours, still same pay.

When are employers required to pay overtime? How should we respond to the letter we received?

[Brian EA]

I have a client that has a disgruntled ex-employee. He is claiming that he was never paid overtime pay. He was a salaried employee. He received the same pay regardless of how long he worked. There were several weeks that he didnt work at all and received the same pay. There were weeks that he worked 60 hours, still same pay.

When are employers required to pay overtime? How should we respond to the letter we received?

Some of us use a verbal contract.If you work more than 40 hours per week you will be paid overtime.Others do not pay over time because they say you are paid a salary even if you did not work- as in your case.

Generally speaking over time work is paid after 40 hours. Some States pay over time after 8 hours per day: which means that you can work less than 40 hrs for the week and still earn overtime pay.
If your guy was paid when he was not at work he should not complain when he has to work 60 hrs

[rosieea]

I have a client that has a disgruntled ex-employee. He is claiming that he was never paid overtime pay. He was a salaried employee. He received the same pay regardless of how long he worked. There were several weeks that he didnt work at all and received the same pay. There were weeks that he worked 60 hours, still same pay.

When are employers required to pay overtime? How should we respond to the letter we received?

Hourly employees are paid overtime. Salaried employees are not. As a salaried employee, you are paid to get the job done, no matter how much or how little time it takes.

[taxmandan]

Hourly employees are paid overtime. Salaried employees are not. As a salaried employee, you are paid to get the job done, no matter how much or how little time it takes.

Depends on state law. In our state's rules the work status of the employee determines the payment of overtime, and some salaried employees are entitled to overtime. Your client should contact the state labor board to determine whether he is entitled to overtime under the law.

[veritas]

I would say that most states would require overtime for salaried employees. I know our state does. There are exceptions for proffessionals but rank and file would still be subject to overtime. Think about it. If there wasn't overtime for salaried employees nobody would be paying hourly so they could get around overtime rules.

[Dennis V]

Salaried employees

As I recall, Wal-Mart went through some legal difficulties over this issue. Usually you have to be a manager to be salaried and exempt from overtime laws. Wal-Mart called a lot of their employees managers, paid them salaries, and then worked them more than 40 hours/week. But the employees sued and won, because when the court examined their job duties, they didn't fit the definition of manager, i.e. they had no oversight of other employees, didn't make managerial decisions, etc. So it is my understanding that in order to be exempt from overtime, whether you are paid hourly or salaried, you have to be at the manager level, in name and in function.

[jainen]

labor board inquiries

Even for hourly employees, some small companies may not be subject to the overtime laws. He should ask the labor board, but be very discreet. Employers don't much like labor board inquiries.

[Gene V]

salaried employees

Q. When is overtime required for salaried employees?
A. All salaried employees must be paid overtime unless they meet the test for exempt status as defined by federal and state laws.

CAUTION: Misclassification of salaried employees as exempt creates liability for unpaid overtime. It is the employer´s burden to prove exempt status of employees. See the WH Publication 1281 from the U.S. Dept. of Labor (503-326-3057) and consult the Oregon Wage and Hour Laws Handbook (971-673-0761) for more information.

[Jiggers]

Caution

Unless you are really versed in wage & hour law, or your E & O insurance is great, I would refrain from giving advice in this area. Too complicated.

I would refer them to their state unemployment commission(board) and the U S Department of Labor.

I know a fellow accountant who did give advice, incorrectly, and cost him $5,000 in settlement with the ex-client who was sued by an employee.

[veritas]

Here's a good one. A small bookkeeping firm which was exempt from federal wage and hour because gross income fell under the federal limit WAS subject to federal wage and hour because his clients were subject.

[Jiggers]

And another good one

If you take credit cards, you are subject to wage & hour.

If you receive packages from out of state, you are covered.

That is why I am leary on advising clients on their coverage.