How can overtime be avoided? ?
I have 2 employees who really want unlimited hours, but being a family owned business I cannot afford to pay them that much OT. They have asked to waive their OT rate rather than me hire another employee. But I know that is illegal and they can not “opt out” ot OT pay. Any other way to allow them the hours they want without putting myself at risk ...?
- Little PrincessLv 79 months ago
They're probably not going to like the idea, but the only way to keep the overtime pay from ruining your business is to reduce their hourly rate so that they would end up getting the same paycheck as they would at their regular rate without the overtime bonus.
For example, if they currently earn $10/hr at 50 hours per week (without overtime bonus) would be $500/wk. If their pay were reduced to $9.10/hr and they worked 50 hours per week, they would earn $364 for regular time and $91 for the extra 10 hours and $45.50 for the overtime bonus, for a grand total of $500.50 for the week.
This would only work if the two of you agree on exactly how many "overtime" hours they'd be working. You would also want to check your state's employment laws with regards to lowering someone's salary.
- PAMELALv 79 months ago
No, if they want more hours tell them to get a second job, you run the business, not them!
- SlickterpLv 79 months ago
You are not at risk. They cannot have he hours, the law is clear.
- Anonymous9 months ago
Salaried employees do not get overtime. There is also compensatory leave - time off for time worked.
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- STEVEN FLv 79 months ago
The only way that is even remotely legal would be to put them on salary, instead of paying them hourly. To do that, the salary would have to be the MOST they would have earned working the overtime at an hourly rate. I doubt that is anywhere close to what you are trying to do.
- Pearl LLv 79 months ago
just tell them to get a second job if they want extra money
- 9 months ago
No because it would be easy for this to come back and bite you in the behind. You are at risk of extortion or discrimination charges with this idea. You just have to tell them that you cannot pay unlimited overtime and you cannot break the labor laws. Tell them you talked to your accountant about it.