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seperate company same owner Maryland

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  • seperate company same owner Maryland

    A friend of mine is working between 40-50 HPW at a
    restaurant. His boss runs a catering business on the
    side
    My friend is being required to put in a additional 20
    hours per week at the catering business. However he is
    NOT being paid overtime on the catering business with
    the rationale being that it is a seperate company.
    This is in maryland...

    This can't possibly be legal can it? Else every company
    would create a temporary staffing firm as a seperate
    company and have all there workers be employed there
    while on OT.

  • #2
    http://ecfr.gpoaccess.gov/cgi/t/text...91_main_02.tpl
    "Reality is that which, when you stop believing in it, doesn't go away".
    Philip K. **** (1928-1982)

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    • #3
      It is *probably* not legal but it will really depend on the relationship of the two companies. The Disney Corporation owns the ABC network, but if someone worked 30 hours a week in a Mickey Mouse costume and then 20 hours a week doing data entry for ABC, they wouldn't be due overtime - the companies are structured separately.
      The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

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      • #4
        "The Disney Corporation owns the ABC network, but if someone worked 30 hours a week in a Mickey Mouse costume and then 20 hours a week doing data entry for ABC, they wouldn't be due overtime"

        Yes but this is not a choice on his part to work the catering. It is required. He never applied to the other company or sent them a resume. It is basically the same work same recipes just at a different location. His boss is using him and others rather than hiring new employees because the quality of work and experience is a known quantity.

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        • #5
          And as I said, it is probably not legal to not pay him overtime. If you are looking for an absolute carved in stone definite answer, I'm sorry but I can't give it to you. As I have indicated, it is possible to set the corporate structure so that the companies really are separate. I doubt that this is the case here, but since I haven't read the corporation papers I can't say it's impossible. A *probably* is the best you're going to get on a message board. Your friend is free to contact the MD DOL and file a wage claim if he wants to pursue the matter.
          The above answer, whatever it is, assumes that no legally binding and enforceable contract or CBA says otherwise. If it does, then the terms of the contract or CBA apply.

          Comment


          • #6
            wage claim Md.
            http://www.dllr.state.md.us:80/labor...remedies.shtml
            note: If your claim involves non payment of overtime pay, you should contact the U.S. Department of Labor at 1-866-4US-WAGE.
            Too often we underestimate the power of a touch, a smile, a kind word, a listening ear, an honest compliment, or the smallest act of caring, all of which have the potential to turn a life around. Leo Buscaglia

            Live in peace with animals. Animals bring love to our hearts and warmth to our souls.

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            • #7
              Joint employment

              http://www.dol.gov/WHD/opinion/FLSA/..._jointempl.pdf


              "Employee" under Section 3(e) of the FLSA means any individual employed by an employer, and "employer," under Section 3(d), includes any person acting directly or indirectly in the interest of an employer in relation to an employee. The term "employ" means to suffer or permit to work, and includes the principles of joint employment. Joint employment refers to a condition in which a single individual stands in the relation of an employee to two or more persons at the same time. A determination of whether the employment is to be considered joint employment depends upon all the facts in the particular case. If the facts establish that two or more employers are not completely disassociated with respect to the employment a particular employee, a joint employment situation exists (29 CFR 791.2(a)).


              An employee who performs work which simultaneously benefits two or more employers, or works for two or more employers at different times during the workweek, generally will be jointly employed where the employers are not completely disassociated with respect to the employment of the particular employee and may be deemed to share control of the employee, directly or indirectly, by reason of the fact that one employer controls, is controlled by, or is under common control with the other employer (29 CFR 791.2(b)(3)).
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