Legal Question in Employment Law in Georgia

Bonus in lieu of OT

Whenever I had to submit OT hours worked, my boss insisted that I use the word ''bonus'' instead of ''overtime'' and to use a ''bonus authorization form''. This went on for 9 months. My paychecks also reflected my OT as a bonus.

As of 10/01/02, this policy changed. Now I am required to fill out an ''OT authorization form'' for any OT worked and now my paycheck reflects the ''bonus'' paid for the first 9 months and ''OT'' for the last 3 months of this year.

Is there a particular reason for them doing this? Is it legal to represent OT as a bonus?

Thanks.


Asked on 12/27/02, 12:05 am

1 Answer from Attorneys

James Zito Zito Law Group, LLC

Re: Bonus in lieu of OT

Hello.

The issue is not so much whether it is referred to as "bonus" or as "overtime". In fact, he could call it "Howdy Doody" time if he wishes, PROVIDED YOU GET PAID at an hourly rate that is ONE AND ONE HALF (1.5) times your regular hourly rate for any time that you work in excess of forty (40) hours in your regular 7 day work week.

FOR EXAMPLE: If your regular hourly rate is $10/hour, you would be entitled to be paid $15/hour for any time worked in excess of 40 hours/week. If you worked fifty hours in a given week, you would earn a TOTAL GROSS PAY of $550 for the week, calculated at $400 for the first 40 hours (40 hours x $10/hour) PLUS OVERTIME PAY OF $150 for the 10 hours of overtime (10 hours x$15/hour)

If your employer simply paid you your regular hourly rate for time worked in excess of your regular forty (40) hour work week during the first nine months of the year, he may have violated cetain provisions of the Federal Fair Labor Standards Act (the "Act").

NOTE - the Fair Labor Standards Act only requires that time-and-a-half overtime pay need be paid to those employees who are actually covered by the Act (i.e., those who are NOT "exempt" from the Act). Most regular hourly employees ARE covered by the Act. Management and professionals and some other special categories of employees are NOT entitled to be paid overtime, and, for them, it IS legal for the employer to simply pay them a regular weekly wage regardless fo how much time they have worked. Such empolyees are called "Exempt" employees because they are "Exempt" from the Overtime provisions of the Fair Labor Standards Act.

The U.S. Dept. of Labor in your region, if advised of a potential violation, will conduct an investigation, and, as appropriate, will compel the employer to pay "back-pay" for all "overtime" for which full (time and a half) pay was not paid. They will also collect back taxes and impose penalties on your employer for the failure to abide by the Act.

If YOU are a "Non-Exempt" employee, then you ARE covered by the provisions of the Act, and therefore entitled to overtime pay.

If you have NOT been paid properly, your employer is NOT going to want to have the Department of Labor conducting an investigation of his payroll practices. If you have a reasonably good relationship with your employer, you may want to request that you be paid all of the back-pay to which you are entitled. Any communications to your employer in this regard should be in writing (and be sure to KEEP A COPY of whatever you put in writing!).

If your employer fails to do the right thing, or if you believe asking would be either futile or result in retaliation against you, then go directly to the Federal Department of Labor, and file a complaint - they will generally conduct an investigation anonymously.

Good Luck!

And have a happy New Year!

Regards....... Jim Zito

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Answered on 12/27/02, 8:22 am


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