Legal Question in Employment Law in Florida

Outsourcing Work to Reduce Overtime Overhead

All,

I have another question regarding employment law. Does employment law vary from state to state?

There is a new company assuming the government contract in which I am employed.

Upon assuming the contract, they made a decision to outsource workers, or hire part-time help, to work any additional hours to avoid paying my colleagues and I overtime should any additional hours become available. In my opinion, this is clearly an unethical way to do business and treat your full-time staff.

However, I am unclear of the legal standing on this matter.

Are there any laws in place that prevent them from such a practice?

There is certainly one thing that is assured in this situation. It will certainly deplete morale among the full-time employees in the coming weeks. Even if this employment practice is indeed legal, I think it will cause some backlash for the present contractor in the near future.

Thank you for your time and help in explaining the legal standing on the practice of companies outsourcing part-time personnel in order to reduce their overtime payroll budgets. Have a nice afternoon.

Thanks,

[email protected]


Asked on 12/02/03, 3:04 pm

2 Answers from Attorneys

Re: Outsourcing Work to Reduce Overtime Overhead

The practice is legal as long as the company does not violate any existing contract such as a labor contract.

You are correct that companies must balance employee morale, which has a direct impact on efficiency, productivity and thus profit, against the need to cut costs which often has short-term benefits but long-term detriment. Unfortunately, the short-term benefits seem to carry most of the weight most of the time.

From a practical standpoint, make sure the supervisors who hand out overtime know that you want to work it and are willing to do so whenever it is available. Also, remember that you are still getting paid to do a job. Don't let your morale be affected by business decisions you disagree with. Rather, keep in mind that millions are still unemployed in this country and would love to have your problem, so you are fortunate to have a job even if the company is a bit nutty.

Good luck.

Jeff Sheldon

Jeffrey L. Sheldon, Esquire

The Sheldon Law Firm

17804 St. Lucia Isle Drive

Tampa, FL 33647

813.986.7580

(f) 813.986.7489

(Admitted in Fl., MD, D.C., and Pa.)

[email protected]

http://www.SheldonLawFirm.com

Disclaimer: This posting does not and is not intended to constitute legal advice. It is not confidential, nor is it privileged, and it does not create an attorney-client relationship. Please consult with an attorney for advice specific to the facts of your case.

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Answered on 12/02/03, 3:30 pm
Keith Stern Shavitz Law Group

Re: Outsourcing Work to Reduce Overtime Overhead

Unfortunately, there is nothing illegal about the practice you've described. In short, the law does not require an employer to provide overtime work nor does it prevent an employer from outsourcing work. And, while employment laws do vary somewhat from state to state, the overtime laws are mostly federal in nature and more uniform in nature in this area. As a result, while you may be right that the contractor could receive some negative feedback from these decisions, because there is no legal recourse at this time, please be sure to keep a level head when dealing with your supervisors, etc.

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Answered on 12/02/03, 4:03 pm


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