Overtime Pay |
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Dear Dave
I am currently looking to modify the benefit package for my firm and provide
additional benefits to professional employees. Where can I find information
with regard to available options and governing law? I am considering overtime
for salaried employees but have been advised that federal law prohibits
this. However, I’m aware of several firms that do pay all employees
overtime. Are they breaking the law, or am I just wrongly informed?
DM - VA
Dear DM
Yes—many firms do elect to pay "salaried" staff for hours
worked above and beyond the standard work week and that is generally not
illegal. What is illegal is if you were to dock or otherwise deduct salary
from "salaried" individuals should they happen to come up a
couple of hours short during a pay period. It’s generally the docking
that gets you in trouble, not the additional pay, but this is a tricky
legal matter and you definitely need to seek proper legal advice before
making any changes to your payroll practices.
At the time of this article, there is legislation pending to completely
overhaul the federal wage and hour rules that could very well have an
impact on who is and who is not considered eligible for overtime pay and
the methods by which overtime is to be determined. For a definitive answer
to your question you should contact the US Department of Labor, Wage and
Hour Division for your area (see the government pages of your local phonebook).
Otherwise, you may wish to review your questions and proposed changes
with a local attorney who specializes in wage and hour issues. |
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