Overtime pay

System

[font size="1" color="#FF0000"]LAST EDITED ON 03-28-03 AT 11:16AM (CST)[/font][p]Employee works for our management company as a customer service rep. follow-up calls for service and sales. We have several companies that have seperate tax ie etc; can this employee be employed as a file clerk for one of our other companies at a different rate of pay and the time not be considered overtime pay. the employee will receive a seperate W2 at year-end.
I neglected to mention that we are a New Jersey Employer if that makes a difference.

Leslie

We have several companies with their own tax ID. It was determined that because they are owned by the same group of people we would have to pay OT to anyone working more than 40 hours at/or between any of the facilities. And I suppose it makes sense - the accounting, HR, and security hold an enterprise moniker. Sounds like you fall under much the same umbrella.

Pork

JMORELAMD: After refering to my Part 778:Interpretative Bulletin on Overtime Compensation, I find that you have either raised a concern in which I could not find any guidance for the specifics, as provided in your post. (or) It would appear to me that if your Corporate Body has related Federal Id'ed companies each with a different mission in support of their Industrial gains, the employment of a person in two or more companys is a stand alone opportunity for the employee.
I believe that two companies with different missions could be the primary employer and each could provide work for the individual up to 40 hours without either having to pay overtime (there are 168 hours in a work week, so it is possible). It could be a fatigue issue and a safety issue, but I do not see how it could be a wage and hour issue. I could be wrong and I would not recommend this type of arrangement. i believe one company using the person as a part-timer and the other company as a full-time regular employee and earning O/T. I would validate my opinion with the corporate attorney!

We are in the Swine Industry (we produce and grow out Hogs for market); we have an employee who is on our payroll and off loads the animals for market on the work site of the processor; he is paid by our company. The Market (processing house) could also have this same employee working for them on the 2rd shift cutting meat and doing other work, other than off-loading our animals for market. We could both be under the umbrella of a corporate Food company, like Sara Lee, Bryan Foods, and Prestage Farms, Inc. {We are, not but your situation reads like this is the situation.} In this situation both Bryan Foods and Prestage Farms, Inc. could be seperately responsible for paying O/T for all hours worked over 40 hours to the same employee at two different rates of pay.

if payroll is handled by the umbrella company then all bets are off, and both would most likely have to combine the hours and pay a weighted O/T rate!

Hope this helps, Pork

Leslie

Exactly Pork, if your companies are totally stand alone and separate, that's one thing. In my case it was mostly cashiers at the casino taking a part time second job across the street at the gas station/convenience store. And it was determined by our legal department through whatever avenues they take that the practice had to stop or the people needed to be paid OT.