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Getting around overtime pay?

Posted on 9/12/19 at 8:06 pm
Posted by coonasstiger
Metairie
Member since Oct 2007
96 posts
Posted on 9/12/19 at 8:06 pm
We schedule accordingly to where its rare for employees to go over 40hours. 1 or 2 overtime hours here or there is not a big deal; however, I have an employee is begging for extra hours (like 60+ hours a week) and wants it to be paid her normal hourly rate b/c I would not do it any other way. Said she would sign whatever to say that she completely agrees to be paid her normal rate after 40 hours.

Is this legal? Say 6 months go by and she gets mad and quits or gets fired and decide to bring this before LA Workforce. I would obviously have her signed contract and I would video her agreeing to it as well. Would I end up somehow having to go back and pay her the overtime if this happens?

I want to be nice and help her out but I'm not going to do it if it if there's any way could come back and bite me in the arse and have to pay thousands in overtime.

TIA

Posted by crazycubes
Member since Jan 2016
5256 posts
Posted on 9/12/19 at 8:10 pm to
Is she a good worker. I always loved hard working, arse busting employees working overtime. Now, the guy/gal is wanting extra hours to sit around and do nothing, GTFO.

quote:

I have an employee is begging for extra hours (like 60+ hours a week) and wants it to be paid her normal hourly rate b/c I would not do it any other way. Said she would sign whatever to say that she completely agrees to be paid her normal rate after 40 hours.
that's very thoughtful of her, but my guess is that that wouldn't hold up in court

quote:

Say 6 months go by and she gets mad and quits or gets fired and decide to bring this before LA Workforce. I would obviously have her signed contract and I would video her agreeing to it as well. Would I end up somehow having to go back and pay her the overtime if this happens?
my guess again, yep.


Posted by Shepherd88
Member since Dec 2013
4608 posts
Posted on 9/12/19 at 8:16 pm to
Put her on a salary then.
Posted by Corn Dawg Nation
Member since Oct 2009
3533 posts
Posted on 9/12/19 at 8:16 pm to
Don’t do it! FLSA and DOL won’t like it.
Posted by LSURussian
Member since Feb 2005
127260 posts
Posted on 9/12/19 at 8:41 pm to
quote:

Is this legal?
No.
quote:

Would I end up somehow having to go back and pay her the overtime if this happens?
Yes.
Posted by castorinho
13623 posts
Member since Nov 2010
82099 posts
Posted on 9/12/19 at 8:50 pm to
Decrease her hourly rate such that 40*x+20*1.5*x equals 60y

x=new hourly rate, y=old hourly rate












That would get destroyed in court as well.
Posted by Scooba
Member since Jun 2013
19999 posts
Posted on 9/12/19 at 9:00 pm to
Go to Salary
Posted by GhostofRicht
Member since Sep 2019
62 posts
Posted on 9/13/19 at 9:54 am to
You don't mind helping her out, yet you don't want to pay her overtime pay. Sounds like you don't want to really help her out.

Just let her work 10 overtime hours a week. If she is doing good then what is the problem?

Also you should arrange it so that the employees can work 4 days at 10 hours a pop. Have it set up in such a way that 50% or so of the employees use their extra day off as the Monday, and the other half use the Friday off. This way you always have employees at the job M-F. You could even extend your hours open to the public to 10 hours a day now instead of 8 (if that is the case).

So then if people want to work overtime, it would be on the Monday or Friday and you will be there so you can monitor them to see how productive they are and if them working overtime is worth it. This is a win win situation for all involved. And if some employees don't want to work 4/10's, then they can work 5/8's.

This is smart business without giving them any added money. Happy employees are more productive employees.
Posted by notsince98
KC, MO
Member since Oct 2012
18157 posts
Posted on 9/13/19 at 1:03 pm to
It all depends if the employee is exempt or non-exempt.
Posted by 756
Member since Sep 2004
14918 posts
Posted on 9/14/19 at 6:08 am to
here is what I have done

Create a special project or second job for the employee

pay them at a different rate

Set a time limit on the project- 3, 6 12 months and then evaluate


Posted by Tigers4life
The great US of A
Member since May 2004
1865 posts
Posted on 9/14/19 at 7:41 am to
Pay her the overtime or help her get another part time job. Looks like your trying to help yourself out and shouldn't be trying to get around it in the first place.
This post was edited on 9/14/19 at 7:43 am
Posted by TigerDeBaiter
Member since Dec 2010
10275 posts
Posted on 9/14/19 at 2:18 pm to
Just lower her base pay and pay her overtime for anything over 40 hours?

Can you pay her different rates for different duties or something along those lines?

I would be weary, as you stated, that if something goes sour you’d be in trouble. What I described may or not be the most lilly white approach either. So, don’t take it as advice. Just spitballing.
Posted by mettematt9
Austin
Member since Oct 2010
672 posts
Posted on 9/17/19 at 10:38 pm to
Man, been there and done that. Don’t do it. It doesn’t work out in the long run.

It’s never good to have someone who “needs” the hours. They end up just finding ways to cheat time to get to 60. Find ways to incentivize the 40, and don’t agree to pay any more overtime than you are willing (the 1-5 hours maybe).

And she will come back for that due overtime if you try the side agreement, if she needs the money now she will need that money later. Been there.
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