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View Full Version : Overtime in Kentucky


rupy
01-31-2006, 05:32 PM
I am curious on a couple different issues. I work for a Mortgage company in Louisville Kentucky. I had been originating loans for a couple years. The beginning of January my boss asked if I would consider processing for the office. I had no problem with this because I can still originate and since I'm processing too I have an hourly wage that I can count on.

I agreed to work 8-4 Monday through Friday. 40 hours a week. We do not have a time clock so I have to keep track of my time on a written sheet. Yesterday I was to turn in my time for the last two weeks of January. Here's where I ran into a problem.

I had counted an hour and a half of overtime for the week of the 16th. Monday of that week was Martin Luther King day. I was not supposed to work but my boss and his wife (who works with us) went out of town and they needed me to come in and enter leads and babysit the office. So I came in even though I had been told earlier that I was off.

So I worked 4 and 1/2 hours on Monday then Tuesday I had a long day. I worked 9.5 hours. Then normal for the rest of the week 8 hours a day. So
actual hours worked 37 1/2 . I assumed because I worked on my day off I would get time and a half. And because I worked 1 1/2 over on Tuesday I would receive time and a half for that time.

This was my actual time. My boss came back to me and did this....

He decided to give me a full days pay for Monday even though I didn't work the full day... not time and a half though just a straight eight hours. And freaked out about me counting my 1 1/2 hours over on Tuesday. He said he did not have to pay me for this because I did't work over 40 hours in the week. So I said to him, "I thought anything over 8 hours in a day was overtime". He came back to me and said he had looked it up and he wasn't required to pay me overtime unless I worked more than 40 hours in the week.


Honestly I was ready to choke him because we were talking about a difference of say $5.00. So I said figure it however you think you should. And he came back with having me write out that I worked 8 hours everyday. So he changed my actual time sheet to show 8 hours a day. So he ended up paying me 70 cents more. So I'm not getting cheated any money.

BUT

What I think I've figured out since then is this.

1. If you hire an employee and say you will pay over time after 40 hours in a work week... then yes he is correct in calculating overtime this way.

But... He hired me to process and requires me to be there from 8-4. Am I right that after 4pm would be outside my regular workday? So under the overtime law wouldn't it be considered overtime. Since he did not say when he hired me it would be on a 40 hour work week bases.

I don't have a problem working his way so as long as we are on the same page. I just feel like he switched things in mid stream.
************************************************** *****

2. I will start recieving bonuses in 30 days or so and he was adament that when my bonuses for closing loan packages kicks in that he will not be paying me overtime... regardless of hours worked. Since he started this whole mess of not having to pay me overtime I've started investigating things.

Is it right that Bonuses don't count toward overtime compensation and in fact would need to be averaged into my hourly wage to calculate my premium compensation?

I've also discovered he may have a problem with the way he pays his full commission employees of which I was one for a long time. But I want to address that in a new post.

Thank you for you input.

kathy

cbg
01-31-2006, 06:47 PM
Nothing in either Federal or Kentucky law requires him to pay overtime for over 8 hours in a day. He is absolutely right that he is not required to pay you overtime until you have worked over 40 hours in a week.

I'll let Patty address the bonus issue as it's a bit more complicate.

rupy
01-31-2006, 07:24 PM
Thanks for your reply. What about this bit I have copied from 803 KAR 1:060. *** READ THE PART AT THE END AFTER THE ****'S

Overtime pay requirements; RELATES TO: KRS 337.285

STATUTORY AUTHORITY: KRS 337.295


Section 1. Application of Overtime Provisions Generally. Since there is no absolute limitation in KRS 337.285 on the number of hours that an employee may work in any workweek, he may work as many hours a week as he and his employer see fit, so long as the required overtime compensation is paid him for hours worked in excess of forty (40) hours as prescribed in KRS 337.285. This statute does not require, however, that an employee be paid overtime compensation for hours in excess of eight (8) per day, or for work on Saturdays, Sundays, holidays or regular days of rest. If no more than forty (40) hours are actually worked in the workweek, overtime compensation pursuant to KRS 337.285 need not be paid. ****Nothing in the statute, however, will relieve an employer of any obligation he may have assumed by contract or of any obligation imposed by other state or federal laws to limit overtime hours of work or to pay premium rates for work in excess of a daily standard or for work on Saturdays, Sundays, holidays, or other periods outside of or in excess of the normal or regular workweek or work day.

Wouldn't working past your regular work day be considered under this statement....?

Thanks.
Kathy

Pattymd
02-01-2006, 04:59 AM
No, it doesn't say that. The statement at the end means that, if you have a bona fide contract requiring overtime for anything other than the law requires, that the contract will prevail. It also means that if there were a different federal or state law requiring overtime pay that is more lenient than this statute provides for, that the employer would have to pay it. This may be an issue in certain industries, specific types of job, or on prevailing wage contracts, for example.

But nothing in that statement requires overtime pay for over 8 hours in a day, or for work on nonscheduled days, weekends, or holidays, exceptions aside.

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