Before you are tempted to come up with clever ways to avoid paying overtime to employees, consider this: It’s usually easy for courts to see through such ruses.
And after they discover shenanigans, courts usually reward the wronged employee with a bonus payment equal to the lost overtime wages—plus the employer has to pay the legal fees. Such a judgment can vastly exceed the money the employer hoped to save by denying overtime pay.
Recent case: Timothy Gagnon was a skilled craftsman who had many years of experience prepping and painting aircraft exteriors and interiors. When he went to work for United Technisource, he agreed to accept $5.50 per hour for straight time and $20 per hour for any overtime.
The company also agreed to pay Gagnon an additional $12.50 per hour up to 40 hours per week as a per diem payment to compensate him for making the trip from his home to the facility.
That payment maxed out at $500 per week.
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