Comments on: FLSA claims shoot up 77%: Are you at risk?

By: Michelle

Michelle — Fri, 07 Aug 2009 12:30:33 +0000

What about inappropriate deductions from salaried employees? The focus seems to be on the non exempt but what about the exempt professionals?

By: Jo

Jo — Thu, 06 Aug 2009 23:28:06 +0000

The employer’s share of insurance premiums, 401(k) or some profit sharing plans are not considered when calculating overtime. Neither are “discretionary bonuses” which would be bonuses or gifts which are completely discretionary, based on no objective criteria and are not routine.

By: Gary

Gary — Thu, 06 Aug 2009 19:58:14 +0000

We just got done with a DOL audit regrading an OT complaint. On thing the DOL inspector said he would like to see to alleviate time challenges is a good timekeeping system where it is not left up to the supervisor or he employee to estimate when they started or ednded work. We are now looking at clock in/out alternatives that will serve the wide variety of hourly employees we have, from those who do nothing but desk work to those who never see the inside of a building.

By: BT

BT — Thu, 06 Aug 2009 18:09:51 +0000

So, what is the reaction of the company when an employee discovers this little tidbit and mentions it to payroll or HR? If the employee is terminated for being a trouble maker, sure, they could take the company to court, but how does that help the employee’s job situation in the meantime? They would be taking a risk. Maybe the company will decide to stop the bonuses instead.

By: Victoria

Victoria — Thu, 06 Aug 2009 17:52:21 +0000

Mary B,

Many people do not know that you have to calculate a “regular rate” of pay for an hourly employee before calculating the OT rate. so for instance, if an employee makes an hourly rate and then recvs commissions in that pay period, you would need to add the reg wages + commission and divide by number of hours worked in the week to get the regular rate of pay then multiply that figure times 1.5 to calc the OT rate.

By: Mary B

Mary B — Thu, 06 Aug 2009 16:54:04 +0000

Regarding the last paragraph: “On the back end of record keeping, FLSA requires your company to track total compensation (not just base pay) when calculating overtime rates. This includes bonuses, money from PTO buy-backs, wellness incentives with monetary value and other forms of compensation.”

Can someone please explain that one to me? I was under the impression that overtime was figured as “time and a half”, or the employee’s hourly rate plus half their hourly rate… would paid insurance premiums need to be considered as an “other form of compensation” in computing an overtime rate?

By: Lori

Lori — Thu, 06 Aug 2009 16:49:29 +0000

I’ve had a couple of people let me know that they were overpaid but that’s over the last 25 years…it’s very rare that they point it out. Maybe you don’t work with several different rates for working in special areas or doing special work, Johanna. Our payroll is very complicated, (union electricians out of 9 locals…sometimes doing tunnel work, bridge work, high time, cable-splicing or welding, etc.) and they seem to always know immediately when they are underpaid!
I can relate, Tyrone.

By: Mary D.

Mary D. — Thu, 06 Aug 2009 16:37:43 +0000

Just this morning, I saw a supervisor walk to an hourly employee’s desk at 7:45 a.m. and begin talking about work problems asking her to look at such-and-such account on the computer. Supervisors have been told over and over again that work begins at 8:00 a.m. for hourly employees and not before unless they want to authorize overtime for the employee. I’ll be watching the timesheet to see if he paid her overtime.

By: Johanna

Johanna — Thu, 06 Aug 2009 16:19:22 +0000

That’s sad Tyrone. I have had it happen several times at my company and the EE lets us know immediately. It may be the people you are hiring. ????????

By: BT

BT — Thu, 06 Aug 2009 14:50:08 +0000

How do you figure in total compensation for OT? Do you take the previous quarter or year to date and average it in? Some bonuses are based on profit, safety, or attendance.