{"id":3782,"date":"2019-10-31T09:00:00","date_gmt":"2019-10-31T10:00:00","guid":{"rendered":"https:\/\/sonusbenefits.com\/paying-overtime-no-buts-about-it\/"},"modified":"2019-10-31T10:02:14","modified_gmt":"2019-10-31T10:02:14","slug":"paying-overtime-no-buts-about-it","status":"publish","type":"post","link":"https:\/\/sonusbenefits.com\/paying-overtime-no-buts-about-it\/","title":{"rendered":"Paying Overtime: No Buts About it"},"content":{"rendered":"

If <\/span>your <\/span>employees <\/span>are willing to <\/span>go the extra mile, you<\/span>’ll<\/span> want to make sure they are rewarded accordingly. Doing so could <\/span>mean dishing out<\/span> individual or group recognition, <\/span>special <\/span>bonuses<\/span>,<\/span> or other <\/span>creative<\/span> <\/span>on<\/span>–<\/span>the<\/span>–<\/span>job <\/span>perks.<\/span> <\/span> <\/span> <\/span><\/p>\n

That said,<\/span> if going the extra mile means your team is working overtime, creativity may not be an option. <\/span>If you have employees who are overtime eligible, y<\/span>ou’ll have to play by the rules.<\/span> <\/span> <\/span><\/p>\n

If your overtime-eligible employees are putting in more than forty hours in any given work week, whether it’s mandatory, approved, or unapproved, they must be paid overtime. <\/span> <\/span><\/p>\n

The following are NOT solutions to paying overtime: <\/h3>\n

Adjusting hours or pay periods <\/span><\/i> <\/span><\/p>\n

An overtime eligible employee who works 60 hours one week and 20 hours the next is still entitled to overtime for those 20 hours worked in week one. This is true even if all of this occurred in a single pay <\/span>period. Hours worked per week are hours worked per week. Period. <\/span> <\/span><\/p>\n

Work weeks can begin on any day and at any time and may be different for various employees and work groups<\/span>, but the<\/span> work week must be a set standard. Employers cannot shift work week start days or times to avoid paying overtime and hours cannot be averaged over multiple weeks or pay periods. <\/span> <\/span><\/p>\n

Withholding pay for any reason<\/span><\/i> <\/span><\/p>\n

Overtime pay earned in a particular week should be paid on the regular pay day for that specific pay period. It cannot be <\/span>withheld <\/span>as an incentive, until it reaches a certain number<\/span> of hours, <\/span>in retaliation<\/span>, or for any other reason. <\/span> <\/span><\/p>\n

Paying the wrong rate<\/span><\/i> <\/span><\/p>\n

One c<\/span>ommon wage and hour violation <\/span>is when<\/span> employer<\/span>s attempt to <\/span>pay overtime <\/span>hours <\/span>at <\/span>an <\/span>employee’s regular rate of pay.<\/span> <\/span>T<\/span>his is an incorrect payout. While t<\/span>he first 40 hours of the week are paid at the regular rate, all additional hours worked in that same week must be paid at 1.5 times that rate. <\/span> <\/span><\/p>\n

Mixing up employee classifications<\/span><\/i> <\/span><\/p>\n

Some employers misclassify employees to <\/span>avoid paying overtime, <\/span>but this can be a very expensive long<\/span>–<\/span>term strategy. Intentional misclassification of employees can result in time consuming audits and expensive <\/span>fees<\/span> and <\/span>fines<\/span>. Class action<\/span> lawsuits <\/span>can lead to exorbitant legal costs and settlements, negative PR<\/span>, poor morale, <\/span>and<\/span> <\/span>a <\/span>damaged reputation<\/span>.<\/span> <\/span><\/p>\n

Replacing it with comp time<\/span><\/i> <\/span><\/p>\n

In one study<\/span><\/a>, <\/span>one-third of 500 private-sector employers said they used comp time instead of overtime — a common violation of the FLSA.<\/span> <\/span>Private sector non-exempt employees covered by <\/span>the FLSA must be paid for all overtime hours worked and are not eligible for comp time.<\/span> <\/span>Even if both the employer and the employee would prefer a comp time system, it’s rarely legal. The<\/span> FLSA still mandates that <\/span>nonexempt employees <\/span>be paid overtime instead of granted comp time<\/span>. <\/span> <\/span> <\/span><\/p>\n

But we didn’t mean to… <\/h3>\n

Sometimes employees aren’t out to get anyone. They just don’t understand the complicated rules and regulations and how to apply them.  <\/span> <\/span><\/p>\n