Two questions regarding pay.

I have two questions regarding pay where I work.

My first question is:
At one point, any hourly employee working over 40 hours was paid overtime (time and a half) for any time over 40 hours. In an effort to cut payroll expenses, the company now takes any time over 40 hours, "banks" it, and then adds the time to any following pay periods where you don’t accumulate 40 hours. The pay may end up on the next paycheck, or you may end up with time in the “bank” for months depending on work schedule. This seems wrong to myself and most of the employees, but nothing is ever really done about it.

My second question has to do with a separate “division” of the same company:
In the service/maintenance division of this company (where we travel to homes and businesses for installation/maintenance), employees are paid based on billable hours; each hour billed is an hour of pay for that employee. The hourly service rate was also paid for non-billable time that was spent working on various tasks and errands for the service division (picking up supplies/materials, vehicle maintenance, cleaning storage facilities, etc…). Recently, a policy has been implemented where service employees are paid a different (significantly lower) pay rate for any un-billable time spent working in the service division (running errands, vehicle maintenance, etc...). Aside from the fact that none of the service employees want to take the rather large pay cut to run around picking up supplies, getting the vehicles maintained, etc, is there actually anything wrong with this? I’ve been curious for a while and figured I’d ask.

Also, are there any actual laws requiring overtime pay if you work on a national holiday, or is that solely based upon the discretion of each employer?

Thanks.

1 answer  |  asked Jun 9, 2005 01:47 AM [EST]  |  applies to Ohio

Answers (1)

Neil Klingshirn
A company cannot "bank" overtime hours to be paid in a week with less than 40 hours

An employer must pay non-exempt employees time and one half for all hours worked over 40 in a single work week. The employer cannot bank hours over 40 in week 1 to be paid at straight time rates in a week 2, 3 or later, in which you work less than 40 hours. In addition to being a state and federal overtime violation, this practice probably violates Ohio's semi-monthly wage payment law, which generally requires an employer to pay an employee wages promptly.

Call me at 330.665.5445 if this practice is affecting a substantial number of employees over a long period of time. It may be a claim worth pursuing.

As for different rates of pay, an employer can pay different rates for different duties. The practice that you describe is therefore probably lawful. Note, however, that you are entitled to overtime pay after 40 hours of "hours worked," which is probably different from your employer's "billable hours." That is, if some of your work is neither billable nor non-billable, but is time that the employer required you to be there but then did not have enough work for you to do, then you may have additional overtime hours.

Finally, federal and Ohio overtime laws do not require overtime for holidays. That is up to the employer or, if you have a union (and it sounds like you might need one), a requirement of a collective bargaining agreement.

Best regards,

Neil Klingshirn

posted by Neil Klingshirn  |  Jun 9, 2005 10:31 AM [EST]

Answer This Question

Sign In to Answer this Question

Related Questions with Answers

Have an Employment Law question?

Contact Neil Klingshirn

Neil Klingshirn
AV rated Super Lawyer and Employment Law Specialist
Independence, OH
Phone: 216-382-2500