Legal Question in Employment Law in California
Company not paying overtime
Sometimes our company does not pay overtime to employees because the employees make a special deal with the company to take off early later in the week, etc. However, the employees are not even getting the benefit of the time and a half rate that they would get if they are paid overtime or take off comp time. I am the HR Administrator and have spoken to payroll and management about this issue. However, nothing has changed. What would be the best way to report this without jeapordizing my job? Also, what agency would you recommend I report this to?
3 Answers from Attorneys
Re: Company not paying overtime
In California, the proper agency is the Division of Labor Standards Enforecemnt, of the Dept. of Industrial Relations. They have a website at www.dir.ca.gov.
Re: Company not paying overtime
The DLSE is the proper source for reporting such information. Prior to making any report, you document your concerns, in writing, to your employer for your own protection. The DLSE office locations can be found at http://www.dir.ca.gov/dlse/DistrictOffices.htm
Also, providing comp time is illegal, regardless of any alleged "agreement."
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Re: Company not paying overtime
California law allows employers to provide make-up time for employees who must be absent due to personal reasons. This make up time must be used within the week in which the time off is taken and may be paid at straignt time rates, up to a maximum of 3 hours in one day. The request by the employee must be in writing
Thus if an employee requests 4 hours of to leave early on Friday, (note, it must be the employees' request, not the employers requirement)he can work an additional 3 hours on one day and 1 hour on another day, and not be subject to overtime.
If this is what is going on, you should not report to any agency. Rather, you should carefully examine your policies and practices to make sure you are in compliance with state law.
If the employer is not following the procedure required for make up time, you should do a self audit and advise management that failure to pay overtime when due will carry penalties that may exceed the wages due in some instances. Arranging payment before employees leave the employ of the company will in most cases prevent penalties.