I have an individual that owns all of the stock in several S-corporations. He has several employees who work for more than one of his corporations- each one gets a W-2 from each separate corporation. If one employee worked 30 hours during the week for two of his corporations would there be anything subject to over time. My initial research suggests that there would be no overtime exposure since these are completely separate corporations even though they are owned by one individual.
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Sabre
" You don't learn much from the second kick of a mule." -
Interesting question, and my initial thought was, "Yes, the employee is entitled to overtime." So I entered "overtime pay, related employers" in Google and got 2.1 million hits in 0.00138 seconds. After reading three or four on-point articles I concluded that overtime pay probably does not apply.
You may have done a similar search, but if you haven't you may wish to.Roland Slugg
"I do what I can." -
Probably not...buy more information may be needed to make determination.
I enjoy these questions that make us "think" about situations. I'm also wondering if how this type of scenario might affect the Affordable Care Act provisions.
Here are excerpts from the website below that might help answer your question. It would suggest you need to ask questions relating to the duties, management structure, etc. of the employees performing services for both corporations. I’d suggest you read the link. I hope it helps.
“Work performed for multiple corporate entities can be combined for purposes of determining overtime pay obligations under two scenarios. In one situation, if an employee is employed by two or more “joint” employers during a workweek, all the employment during the week is considered one employment period and all joint employers involved are jointly and severally responsible for compliance with the FLSA's wage and hour provisions for that work week. In fulfilling their joint obligations, each employer may take credit for all payments made to the employee by the other joint employer. In the second situation, multiple business entities that are deemed to comprise a “single enterprise” also may be liable for overtime pay based on the combined hours worked by employees who are “shared” among the business entities comprising the enterprise”.
“As a general rule, where each employer is in an entirely separate and distinct business and acts independently of the other with respect to employment of the particular individual, a joint employment relationship is not likely to be found”.
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