I own a retail establishment that is organized such that each retail location is its own corporation, with unique FEIN but identical ownership.

I have full-time employees that have expressed a desire to work at other locations as a second job per se, but I'm not sure if that would constitute overtime for them.

Does anyone know the answer to this?

Josh

The following is taken from a DOL opinion letter:


Section 3(r) of FLSA defines “enterprise” as the related activities performed (either through unified operation or common control) by any person or persons for a common business purpose, and includes all such activities whether performed in one or more establishments by one or more corporate or other organizational units.


Thus, provided that the stores have a comon business purpose, the fact that they are seperate corporations would make no difference under FLSA. In addition, since you have control of the employee's wages, you will be personally liable for the unpaid overtime, no matter what corporate structure you use. This comes as a shock to many business owners, but it is well established in the law.

Thanks, that's what I suspected. Glad I checked before allowing the extra hours!

Josh