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Not Paying Overtime - Texas

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  • Not Paying Overtime - Texas

    I was wondering is it ever ok to have an employee sign a contract agreement stating that in lieu of receiving overtime wages they will receive something else instead. (Ex: An employee works for a hotel chain, and in lieu of working lets say 45 hours a week, instead of paying the 5 hours overtime the owner instead lets them live there room and board free) Can they do this? Is there anytime a company can have an employee contract agreement to disregard federal law of overtime compensation?

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    No. Worse, there is a real chance that the value of room and board will have to be included in Regular Rate of Pay, increasing the overtime calculated.
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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