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codeyell0
03-11-2009, 09:30 AM
I have worked for different companies and each seems to view the rule differently on salary overtime (can't remember which gets overtime and which doesn't)
Where I used to work if we worked over 40 hours we would only get half our hourly rate. So if we made 10 an hour salary we would only be paid 5 dollars an hour for working over 40 hours. When I asked what’s the difference between me and hourly employees they said I don’t punch a clock. But I have to be at work at a specific time and finish at a specific time take lunch at a specific time. I was just guaranteed 40 hours, Due to salary. (my job was tech support phone and interoffice) None of us would work OT due to it not being worth our time. if asked We would barter for a longer lunch or something instead.
What is the definitive rule? The HR person showed me the rule and it says exempt employees (i think exempt is right) will be paid .5 for overtime hence why they pay half time for OT.
I don't know how you can pay someone half what they normally make for the same work. But pay hourly people 1.5 times. makes no sense.



Where I work now, we pay certain employee’s straight time over 40. they are field technicians who get salary.


Do companies just pay salary to avoid having to pay overtime?

Pattymd
03-11-2009, 09:46 AM
It's not "salaried" that invokes the overtime requirement, it's nonexempt status. "Salaried" and "hourly" are merely pay methods, although exempt employees (with some exceptions) must be paid a fixed salary of at least $455 per week.

If you are nonexempt, the employer is required to keep records of your hours worked. It sounds like your prior employer was using the Fluctuating Workweek method which, if all the criteria is met, is a legal exception.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.114.htm

Otherwise, if nonexempt, here is the calculation for overtime purposes.
http://www.dol.gov/dol/allcfr/ESA/Title_29/Part_778/29CFR778.113.htm

codeyell0
03-11-2009, 10:09 AM
In my last job we were offered x (lets just say 30k) salary a year. and worked mon-fri 8-5.
We did sign a time sheet for hours worked. We did not fluctuate at all, unless asked to work OT which we didn't usually do the the fact it was paid half time.

I don't think it meets the criteria.

Pattymd
03-11-2009, 10:12 AM
Maybe, maybe not, there's always been some argument among FLSA compliance experts regarding whether or not the hours actually DO have to fluctuate to use the method.

How long ago did you leave the previous employer?

codeyell0
03-11-2009, 10:49 AM
I left them and this was only less then 2 years ago. I still have friends who work there. Thats why I ask

DAW
03-11-2009, 12:18 PM
http://payroll-taxes.com/articles/salaryAlternatives.html

codeyell0
03-12-2009, 08:00 AM
from everything I saw there my old company is definitly misreading something somewhere. everything in there states OT is basically 1.5 the hourly rate. now this depends on how you divide it but it always comes out more then your hourly rate never less from what I see. just depends if they figure out your hourly rate by week month or year.

So I guess they are in violation. correct?

Pattymd
03-12-2009, 08:05 AM
If they are not using the FWW method, or are using it incorrectly, that is correct.

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