I am a temporary employee on a long-term contract. The Temp Agency claims the contract I signed with them is an "All Hours" contract and that any overtime is paid at my regular rate. Is this legal? I read the contract and it is not really clear that my OT rate is the same as my regular rate. Also, they did not point this out when I signed it. They owe me $1500 in overtime pay!

What kind of work do you do?

I'm a computer geek. The Temp Agency just called and said if I'm paid more than $27? an hour, I'm not eligible for time and a half OT pay. My hourly rate is $33.15.

Then you are being paid correctly.

http://www.dol.gov/esa/regs/compliance/whd/fairpay/fs17e_computer.htm

And there's nothing I can do?!

Nothing under the law, no. That's because no law is being violated (I'm assuming you read the criteria in the link ScottB provided, and you do meet it).

And actually, if you DO meet the criteria to be exempt, and the employer is treating you as such, which they appear to be from what you posted, they don't even have to pay you straight-time for overtime.

Now, having said all that, it is VERY rare, in my experience, for staffing agencies to treat workers as exempt; however, it's not illegal.

Nothing under the law, no.


Is there another way?

Negotiate with the agency. But again, if they ARE treating you as exempt, you're getting MORE than the law requires. So you might be rocking the boat here for no gain.

Negotiate with the agency. But again, if they ARE treating you as exempt, you're getting MORE than the law requires. So you might be rocking the boat here for no gain.

Their contract reads: In consideration of your services, THISAGENCY agrees to pay you at the following following rate of $33.15 per hour for all hours worked.

Rocking the boat? I could care less. I have never had a temp agency refuse to pay me time and a half.

Can you provide any negotiation pointers?

Thanks so much for your help!

Can you provide any negotiation pointers?

Are you working for one client of theirs or multiple ones?

If you are working for several during a week and go over 40 hours for none of them, they will have absolutely no interest in paying you unbillable overtime.

OTOH, they might be able to bill your hours at an overtime rate if you work for more than 40 hours in a week for one client. I seriously doubt it, though, since the client will surely recognize that you are not legally required to receive overtime.

Patty, I don't think it is all that unusual for temp agencies to have exempt, hourly professionals, since these can be billed out on an hourly basis. We have some doctors as temps that are like that. We also have two of the much rarer species -- temps that are the traditional salaried exempt. Both of them are on a long-term assignment as supervisors for a client and supervising only the temps we have working there.

Are you working for one client of theirs or multiple ones?

If you are working for several during a week and go over 40 hours for none of them, they will have absolutely no interest in paying you unbillable overtime.

OTOH, they might be able to bill your hours at an overtime rate if you work for more than 40 hours in a week for one client. I seriously doubt it, though, since the client will surely recognize that you are not legally required to receive overtime.

Patty, I don't think it is all that unusual for temp agencies to have exempt, hourly professionals, since these can be billed out on an hourly basis. We have some doctors as temps that are like that. We also have two of the much rarer species -- temps that are the traditional salaried exempt. Both of them are on a long-term assignment as supervisors for a client and supervising only the temps we have working there.

I work for just one of their clients - a very, very big account.

I've worked for many temp agencies and this is the first one who has refused to pay me time and a half OT.

If I am an exempt employee, then shouldn't I get paid 40 hours regardless of the regular hours I work?

I know what the client is paying the Temp Agency for my time. Even at time and a half, they still make a nice chunk of change.

I've worked for many temp agencies and this is the first one who has refused to pay me time and a half OT.

Did any of these other agencies pay you over $27.63 per hour? If not, then they had no choice but to call you a non-exempt employee and pay you overtime when worked.

If I am an exempt employee, then shouldn't I get paid 40 hours regardless of the regular hours I work?

Not really. You could be paid a salary regardless of how many hours you worked. You could work an hour a day for five days and be paid the salary or you could work 24 hours a day for seven days and get the same salary. Forty hours is not the basis for the traditional exempt employee.

That is what Patty was saying earlier. You could be paid a salary and worked to death.

Instead, you are the odd breed of an exempt employee paid on an hourly basis.

Even at time and a half, they still make a nice chunk of change.

The way I figure it, in order to make any profit at all on the unbillable overtime, the markup would have to be at least 65%. Even then, the gross profit would be somewhere around one to two percent.