Failing to pay overtime? You could face a double whammy under federal and state law — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
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Failing to pay overtime? You could face a double whammy under federal and state law

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New York employers should be aware of a potential double hit if they fail to pay employees the correct amount of overtime (OT) pay: The Fair Labor Standards Act (FLSA) entitles employees to double the amount of overtime pay they’re due, and the New York State Labor Law tacks on an additional 25 percent bonus. That’s even more reason to make sure exempt/nonexempt classifications are correct and to pay workers the correct OT the first time.

Recent case: Mary Boyke, an hourly employee at Superior Credit Corp., never received OT pay. She sued and testified that she regularly worked 11 or more hours per day. Sometimes, she also took work home.

Superior didn’t keep records indicating how many hours employees worked, so the court relied strictly on Boyke’s recollection. It calculated up to 1,001 hours of unpaid OT, or $15,671 based on her pay rate.

Since Boyke sued under both the FLSA and the New York Labor Law, the court ordered Superior to pay her back-OT, plus the penalty each law dictated for willful violations. That meant that she received not only the $15,671 she was owed, but also another $15,671 under the FLSA plus $3,917 under the state law (25 percent of $15,671). (Boyke v. Superior Credit, 01-CV-0290, ND NY, 2006)

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