Every HR pro knows employers must pay overtime if an employee works more than 40 hours per week. But does an employer have to pay overtime if it doesn’t know or have reason to know that the employee worked overtime hours?
No, according to the 7th Circuit Court of Appeals. In Kellar v. Summit Seating Inc. (No. 11-1221, 7th Cir., 2011), it held that an employer was not liable under the Fair Labor Standards Act () for an employee’s pre-shift work.
Early punch-in, set-up work
Susan Kellar worked as a sewing manager for Summit Seating, a company that manufactures vehicle seats. Kellar arrived at work between 15 and 45 minutes before the start of her shift and punched in on the time clock. During this time, Kellar unlocked doors, turned on lights and machines, reviewed schedules, cleaned the work area and distributed materials to workstations. Kellar admitted that she spent about five minutes drinking coffee and smoking ...(register to read more)
- How to Fire an Employee the Legal Way: 6 Termination Guidelines
- FLSA violations cost Houston restaurant $126,000
- Worker classification: Salary is just one factor that determines exempt status
- Always enforce 'no unauthorized OT' policy
- Beware minimum wage, OT violations--you could owe double damages, and more