Franchise Business Systems, Inc.
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DOL Recovers $637,000 in Back Overtime Wages

The Department of Labor's Wage and Hour Division has entered into an agreement with 12 Southern California health care companies to pay over 200 of their employees up to $637,000 in back wages. The back pay constituted overtime wages that were never paid to 212 registered nurses that worked for the companies. All 12 health care facilities were jointly owned by two individuals. The employees at these facilities would work at two or more facilities during the same workweek but their hours were calculated separately at each facility.
Under the Fair Labor Standards Act, any hours worked over 40 in any given workweek are to be calculated at time-and-one-half the employee's regular rate of pay. Under the joint employer rules at 29 CFR 791.2, if there is an arrangement between multiple companies for the interchange of the employee, or if one company controls, is controlled by, or is under common control with another company, then the hours worked by an employee for all of the separate entities should be combined, and any hours worked over 40 would be considered overtime. For further information on the joint employer rules, call us at 800-382-1040.

 

 

 

2319 North Andrews Ave ■ Fort Lauderdale, FL 33311
(800) 382-1040 ■ Fax (866) 759-2153
www.franchiseaccounting.com