Employees on Payroll Performing Other Work
Rockie
2,136 Posts
Guys: Give me your take on this.
It is my understanding that if you have an hourly employee who works 40 hours a week for you and then they perform other work on the weekend, they will have to be paid overtime for this work - even if it has nothing to do with their 40 hour job during the week. Even if this second job is at another rate,they will have to be paid a "blended" overtime.
What about a special project? We have an IS person who would like to do a special project for us on weekends. I say this is the same thing - they are still entitled to overtime, even if you propose to pay them a flat rate for the project. You will still have to pay them for the number of hours they spent on the project.
The question I got from our CFO is: "What if they form a Consulting Company" and their company is paid the money. I contend the DOL will look at this as a way of trying to get out of paying the employee overtime.
Another question is got was: "What is the employee is exempt". Can we pay them a flat rate to perform project work outside of what they normally do during the week? I concur that we can as we are paying them a "salary" for the work they perform during the week and if they perform a task on the weekend, then this is outside of what their "salary" covers.
Let me know if I am on the right track here. We have a CFO who fancies himself being "creative" with Wage & Hour and I contend that he is setting himself up for trouble.
It is my understanding that if you have an hourly employee who works 40 hours a week for you and then they perform other work on the weekend, they will have to be paid overtime for this work - even if it has nothing to do with their 40 hour job during the week. Even if this second job is at another rate,they will have to be paid a "blended" overtime.
What about a special project? We have an IS person who would like to do a special project for us on weekends. I say this is the same thing - they are still entitled to overtime, even if you propose to pay them a flat rate for the project. You will still have to pay them for the number of hours they spent on the project.
The question I got from our CFO is: "What if they form a Consulting Company" and their company is paid the money. I contend the DOL will look at this as a way of trying to get out of paying the employee overtime.
Another question is got was: "What is the employee is exempt". Can we pay them a flat rate to perform project work outside of what they normally do during the week? I concur that we can as we are paying them a "salary" for the work they perform during the week and if they perform a task on the weekend, then this is outside of what their "salary" covers.
Let me know if I am on the right track here. We have a CFO who fancies himself being "creative" with Wage & Hour and I contend that he is setting himself up for trouble.
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