If a full-time (1.0 FTE) non-exempt employee working for a private company in Arizona would like to fill another part-time position (0.5 FTE) within the company, thereby filling two separate positions (1.5 FTE's) within the same company, would that employee be eligible to receive overtime compensation if they work 40 hours in the one position and 20 hours in the other position, for a total of 60 hours - 20 of which would be considered overtime? OR, would the two positions be treated separately with regard to overtime eligibility under FLSA?
If a full-time (1.0 FTE) exempt employee working for a private company in Arizona would like to work on an "on-call" basis with another department of the same company wherein they would receive a fixed dollar amount per call for their services in that department, would that challenge their exemption under FLSA? What if the situation above involved, instead of an exempt employee, a non-exempt employee who would like to work on an "on-call" basis with the other department wherein they receive a fixed dollar amount per call, would they be entitled to OT on an hourly basis nonetheless?
Thank you!
ScottB
10-26-2006, 04:24 PM
The first question was about a non-exempt employee.
Working for the same company in different jobs, ALL hours count, so overtime must be paid for work over 40 hours.
I will let someone else address the problem of the exempt doing extra work for another department and expecting extra compensation.
robb71
10-26-2006, 04:24 PM
If a full-time (1.0 FTE) non-exempt employee working for a private company in Arizona would like to fill another part-time position (0.5 FTE) within the company, thereby filling two separate positions (1.5 FTE's) within the same company, would that employee be eligible to receive overtime compensation if they work 40 hours in the one position and 20 hours in the other position, for a total of 60 hours - 20 of which would be considered overtime? OR, would the two positions be treated separately with regard to overtime eligibility under FLSA?
Generally speaking "yes". The worker doing 2 jobs for the same company would be eligible for overtime for hours worked over 40 during the workweek. I often hear of this in situations where a company has multiple FEINs. If the 2 jobs fall under different FEINs, then the work may be treated as separate pay and no overtime would exist in the example. However if the employer uses a common paymaster, it's my understanding that overtime would exist in this example. The specifics do make a difference.
ScottB
10-26-2006, 04:28 PM
the 2 jobs fall under different FEINs, then the work may be treated as separate pay and no overtime would exist in the example.
Well, the DOL does not really differentiate based upon different tax id numbers. They look at ownership and other factors to determine if the two different companies are a common business enterprise or something like that. I am now awaiting an opinion letter from the DOL on this very subject.
I will probably be in for a shock, but we shall see.
robb71
10-26-2006, 04:30 PM
If a full-time (1.0 FTE) exempt employee working for a private company in Arizona would like to work on an "on-call" basis with another department of the same company wherein they would receive a fixed dollar amount per call for their services in that department, would that challenge their exemption under FLSA? What if the situation above involved, instead of an exempt employee, a non-exempt employee who would like to work on an "on-call" basis with the other department wherein they receive a fixed dollar amount per call, would they be entitled to OT on an hourly basis nonetheless?
An employer is always free to pay "more" than the predefined salary amount. This would not in itself challenges an "exempt" worker's FLSA status. If I were tracking this, I'd probably call it a production bonus so to not confuse with normal salary.
And "no" the worker would not be entitled to overtime. However I'd caution that the exempt worker should probably only do this kind of work on a limited basis. If the non-exempt duties begin to outweigh the exempt duties, this MIGHT put the exempt status in jeopardy.
robb71
10-26-2006, 04:33 PM
Well, the DOL does not really differentiate based upon different tax id numbers. They look at ownership and other factors to determine if the two different companies are a common business enterprise or something like that. I am now awaiting an opinion letter from the DOL on this very subject.
I will probably be in for a shock, but we shall see.
Please let me know the outcome! I'd be interested in hearing what they have to say.
I am aware that many firms use a common paymaster to address this issue. And when this exists, OP would receive OT based on the example.
On the flip, I'm not so certain that it would be easy to audit different FEINs to see if OT was warranted. It could be an audit nightmare! :D
sfloto
10-26-2006, 04:37 PM
Thank you both for your quick responses! The FLSA is a complicated mess sometimes.
Shaun
Pattymd
10-27-2006, 03:41 AM
Robb71, related companies are treated as one for purposes of overtime. I've got the cite on this somewhere; I'll try to find it.
robb71
10-27-2006, 03:51 AM
Robb71, related companies are treated as one for purposes of overtime. I've got the cite on this somewhere; I'll try to find it.
Thanks Pattymd and ScottB!
Pattymd
10-27-2006, 07:14 AM
Here it is.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_791/29CFR791.2.htm
(credit Howard Goldman, esteemed colleague) :D
robb71
10-27-2006, 07:24 AM
Here it is.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_791/29CFR791.2.htm
(credit Howard Goldman, esteemed colleague) :D
Howard belongs to another list that I am a member of. He is very well informed. :)
Pattymd
10-27-2006, 07:35 AM
Um, I think I know what list that is, Robb. He and I correspond offline often. And we normally come up with the same answers. :)
sfloto
10-27-2006, 10:52 AM
Thanks Pattymd, thats exactly what I was looking for!
Shaun
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