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Iowa - Mandatory No overtime - hours adjusted

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  • Iowa - Mandatory No overtime - hours adjusted

    Okay, I work for a small company - less than 10 employees. I know we do not qualify for utilizing comp time legally. Here is the deal - the owners allow NO overtime. If someone works overtime - they are not paid for it. Their time card is adjusted to reflect only 40 hours worked.

    Now, there is more to be done than could possibly be completed in 40 hours. All of the employees work more than 40 hours, but don't record it because the owner will pull us aside, and have a "chat" about the fact that no overtime is allowed.

    In addition to that, I've not been with the company for a full year - this equals no paid holidays - company rules are that you must be with the company a full year before any holidays are paid.

    The week I was processing payroll which covered Thanksgiving week, the owner told me to go ahead, pay myself for the holiday. I didn't think much of it - just that the owner was being nice and not following her own rules.

    She came to me a week later and wanted to know when and how I was going to "make up" those 8 hours. In otherwords, I am now required to work some unpaid overtime to cover the holiday she told me to pay myself for! The rate is to be a one to one ratio - 1 hour of "overtime" for 1 hour of "holiday" pay.

    Is any of this behavior on the part of the owner legal? I don't want to lose my job, but the owner is taking some very broad advantage of the employees.

  • #2
    It is legal to have a "no overtime" policy. It is not legal to withhold overtime pay to nonexempt employees who work it anyway.
    http://www.dol.gov/dol/allcfr/ESA/Ti...9CFR785.11.htm
    http://www.dol.gov/dol/allcfr/ESA/Ti...9CFR785.13.htm

    However, you could legally be fired for working overtime in violation of the company policy.

    Have you addressed with the owner how you are supposed to complete XX tasks due by YY date without working overtime? His choice.

    Regarding payment for holiday, assuming you are nonexempt, it was tacky (IMHO) of the owner to tell you to pay yourself for the holiday, then tell you that the time must be made up. That part isn't illegal. What WOULD be illegal is working more than 40 hours in a workweek (whether that is make-up time or not) and not getting paid overtime. What WOULD be legal is to pay the overtime, then reduce your regular pay by 8 hours for the holiday they decided not to pay after all.

    Now, of course, I'm assuming that the company is subject to the FLSA (almost all companies are).
    I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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    • #3
      I knew that the no overtime was legal - ridiculous, but legal. I didn't realize that the owner could legally fire me for working the overtime against company policy - even though it is at her request.

      I've already discussed, several times, with the owner that overtime has to be paid if worked. If she doesn't want to pay overtime, she needs to monitor employee clock in/out times herself.

      Yes, we qualify under FLSA. Retail + catalog business for a specific industry.

      Believe me, I'm in the process of trying to find a place that won't have these type of issues.

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      • #4
        Originally posted by SeasonedGal View Post
        I didn't realize that the owner could legally fire me for working the overtime against company policy - even though it is at her request.
        Dumb move, that would be. Not illegal, but the loss of a good employee.

        What do you think would happen if you said "here are the laws regarding overtime for nonexempt employees. When can I expect the overtime pay for all the overtime I have worked in the past year?" Fired?
        Last edited by Pattymd; 12-23-2009, 08:10 AM.
        I don't respond to Private Messages unless the moderator specifically refers you to me for that purpose. Thank you.

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