Unclear on the concept
Posted on 29-Oct-07 by The Timekeeper
According to an article in the Salt Lake Tribune, following an investigation by the US DOL, Dixie Construction Co. Inc. in Salt Lake City paid $391,005 in back wages to 295 workers.
Dean A. Campbell, director of the Wage and Hour Division’s district office in Salt Lake City, said the company “mistakenly believed” that employees could elect to work more than 40 hours per week at the standard rate of pay.
Uh, no. That’s not allowed under federal law. If your hourly or non-exempt employees are working over 40 hours per week, you must compensate them at 1-1/2 times their normal rate. It’s not optional, folks.
This is why I often advise new business owners to consult with a qualified professional whenever they’ve got questions about labor law. The cost of an hour of a lawyer’s time doesn’t seem all that unreasonable compared with having to cough up nearly $400,000 in back wages. You know what I mean?
(And, of course, if they did consult with someone, and their advisor told them it was okay to compensate for overtime hours at the standard rate of pay… well, time for a new — competent — advisor, methinks.)
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