Even if you pay employees—such as day laborers—on a daily basis, you can’t use that tactic to avoid paying overtime for hours worked beyond 40 in a week. Always tally up the numbers of hours worked per pay period, just as you would for other employees. Otherwise, you risk a lawsuit under the Fair Labor Standards Act () or possibly even a class action.
Recent case: William Dreyer, who was paid daily, filed an FLSA suit claiming he should be paid OT pay for weeks when he worked more than 40 hours. He also sought class-action status on behalf of all others paid by the day.
The court refused that request, but only because his lawyer didn’t give enough information to show that others might be in similar situations. (Dreyer v. Altchem Environmental Services, et al., No. 06- 2393, DC NJ, 2006)