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5616 Views 1 Reply Latest reply: Sep 3, 2010 2:03 PM by Barky_Dog
manthore Newbie
manthore
Currently Being Moderated

Sep 2, 2010 5:02 PM

Opt out of overtime


Several hourly employees at my small restaurant want to work as many hours as possible, but I am reluctant to schedule them over 40 hours per week to avoid overtime pay. They have all agreed to work the hours at their regular pay rates, but I'm not sure this is legal. Can I have them sign a form in which they give up any claim of overtime pay?
Tags: payroll, employee_wages
  • Barky_Dog Apprentice
    Barky_Dog
    Currently Being Moderated
    Sep 3, 2010 2:03 PM (in response to manthore)
    Re: Opt out of overtime

    Hi manthore,

    I noticed that nobody responded to your question yet, So I thought I'd give it a shot. On a law website I found the following:

    Chain restaurants have been sued in court for working employees "off-the-clock," failing to pay restaurant managers overtime compensation, and improperly taking a "tip credit" for time in which workers are not working in a job in which tips are paid. These cases have been settled for millions of dollars.

    Can an employer and employee agree to waive overtime pay?

    *No! *Overtime pay may not be waived by agreement between the employer and employee. If the employer does not want employees to work overtime, it must establish and enforce workplace rules prohibiting overtime.In addition, an employer who is caught violating the overtime laws will not avoid back payments by cutting a deal directly with employees. Courts have found thatagreements that purport to waive back overtime pay claims are unenforceable unless the Department of Labor supervises them or the employee is represented by an attorney.

    I found that here: http://www.overtimepay.com/page.php?id=18

    Of course, you should contact an employment attorney for specific advice for your situation.

    Best of luck,

    Barky

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