Expert: Shirley McAllister, CPP, PHR - 2/9/2008

Question
Where I work we get paid bimonthly. We get 80 hr paychecks, and our overtime is paid Cash, regular pay, not time and a half. Starting in 08 theyve changed this system. For example, the second half of January had 12 work days in it, so instead of getting a 80 hr paycheck, we get a 96 hr check (12x8) and the 16 hours over the 80 are not considered overtime, anything over the 96 hrs we still get cash. My question is if this is legally correct, and if not, what would be the correct way to go about bimonthly pay? Are the 16 hrs considered overtime? and, would it just be more convinient (and legal) for the company to switch to biweekly all overtime time and a half? Thank you for your help

Answer
Irving.

The FLSA says that if you are a non exempt(Hourly) employee that any time worked over 40 is overtime and must be paid as such.
I don't know why part of your check is paid in cash. Certainly the company can pay in any means it wants check or cash, however, that amount of wage does need to have taxes withheld and show up on your W-2 form at the end of the year.

If you are working for a Union, Construction, or the Trucking industry than sometimes their rules are a bit different.

It is much easier to do payroll and figure the overtime with the biweekly system, but it can be done either way. I have done it both ways. If you are semi monthly you need to figure the time over 40 for each week and if it cuts off in the middle of a week you have overlap time with must be figured in the next pay period for overtime purposes.

I would talk to the company first and if you still feel you are not being compensated fairly you can file a claim with the DOL (Department of Labor) for a violation of the FLSA ACT (Fair Labor Standards Act).

Shirley