Don’t delay overtime pay — Business Management Daily: Free Reports on Human Resources, Employment Law, Office Management, Office Communication, Office Technology and Small Business Tax Business Management Daily
Don’t delay overtime
pay,even if employees ask. Pay it at about the same time
you pay for regular hours. A recent court decision affects the timing of
overtime payments, which many employers delay for several weeks. The case: When
its police union asked that overtime be accumulated and paid in separate
monthly checks, a New Jersey city agreed. But a few officers balked and sued,
and an appeals court sided with them. The court said payments may not be
delayed longer than reasonably necessary for the employer to compute the amount
and arrange for payment. (Brooks v.
Village of Ridgefield Park, 3rd Cir., No. 98-6357, 1999) Bottom line:
Overtime payments can’t be delayed beyond the next pay period after the
calculation can be made.