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staci77staci77 3 Posts
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An employee that works for a new car dealership travels from his dealership to another dealership (in same auto group) for inventory. The time spent there puts him over 40 hours. The other dealership is paying the wages for those extra hours. Is overtime required? Both dealerships are owned and managed by the same person. I think it's overtime, but we have a disagreement here. I'm told the work would be considered contracted labor. Who's right?
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  • 6 Comments sorted by Votes Date Added
  • NaeNae55NaeNae55 3,243 Posts
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    Are these dealerships under the same tax ID number? Is the work the same work he does at the home dealership? Are there any other owners? Was he required to do this by his home dealership, or was it voluntary?
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  • staci77staci77 3 Posts
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    Hourly employee, not the same work as he normally does. Two brothers own 4 stores. Owner was asking for extra counters, and employee offered to go. This owner is regularly at these 2 stores. Different tax IDs.
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  • NaeNae55NaeNae55 3,243 Posts
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    The employee probably wanted to make some extra money, but if it was as an independent contractor the owner should have been clear about the rate, etc. He can have the 2nd company cut a check, and it won't be overtime. But, he is asking for backlash from an unhappy employee who probably thought he would be making more than he did. Sometimes the value of doing the right thing outweighs the slight savings your actions get you.
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  • Nevada HRNevada HR 274 Posts
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    Agree with Nae.

    And I would think if it was contract work there should be an [I]Agreement for Services [/I]spelling out duties, rate of pay, whether or not travel time would be compensated, etc., signed by both parties.
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  • staci77staci77 3 Posts
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    Agreed. Employee is very angry. Do you think he'd have a claim with FLSA? He has gone to this other store for other work, and was never paid separately, as it was during the normal workweek. This was on a Saturday.
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  • NaeNae55NaeNae55 3,243 Posts
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    If he has gone there to work and been paid by his home store employer he might have a case. In that case probably the employer in Store 2 could be paying Store 1 for the loan of an employee. It depends on the work involved, etc. Duties that fall in the normal scope (ie, on his job description) would be different from something unusual.

    For instance, if my regular job is data entry, but I agree to do my employer's lawn on Saturdays, that could be a contract situation. If my agreement for extra work involves some kind of data entry, even if it is not the stuff I usually enter, then it would not be contract work.

    The DOL considers a number of factors. You might go to the DOL website and do some research there.
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