2007-09-21 00:38:52 · 12 answers · asked by CynW 1 in Business & Finance ➔ Careers & Employment ➔ Law & Legal
Absolutely not. In the US, under the Fair Labor Standards Act, overtime must be paid for at the same time the regular pay is paid for the pay period in which it was worked. Banking hours, or earning "comp" (compensatory) time, is specifically prohibited unless you work for a state or local government agency. Check out Title 29, United States Code of Federal Regulations, Part 778.106 (link: http://www.dol.gov/DOL/allcfr/ESA/Title_29/Part_778/Subpart_B.htm)
If you are having trouble collecting your proper overtime compensation from your employer, contact the US Department of Labor's Wage and Hour Division. That is the agency responsible for enforcing the FLSA. You can reach them toll-free at 1-866-4US-WAGE. Or, you can also visit www.DOL.gov.
Hope this helps.
2007-09-21 07:40:28 · answer #1 · answered by Poopy 6 · 0⤊ 0⤋
I've never heard of that before and it doesn't sound legal. Anytime someone sets up a fund, you have to be very sure that that fund will be there when you intend to withdraw it. If he doesn't give you your overtime in your hand immediately, report him to the state attorney general's office and whatever state office handles payments of this sort-in Texas it is the Texas Workforce Commission. Then be prepared to have another job. . .
Your boss sounds like he is holding off paying you-either because he is short of funds or has no intention of paying you. You will owe taxes on that money-so get it now. Be sure he is paying employment taxes on it too. Be very careful here.
My best advice is get another job while you still have this one and don't work anymore overtime. Then quit and file a state suit against him for the $ whether it's in the bank or not.
2007-09-21 00:46:58 · answer #2 · answered by towanda 7 · 0⤊ 0⤋
Here's my understanding: Hourly paid employees are to be paid overtime if they work more than 40 hours in a work week. Most supervisory personnel do not get paid overtime since they are paid a set amount (monthly or annually) and have usually signed a contract type paper showing this. But they can get extra time off for compensation. Fair Labor and Wage laws are controlled by the Federal government.
2016-05-19 23:39:19 · answer #3 · answered by ? 3 · 0⤊ 0⤋
A company is required to pay your wages according to its normal practice and in accordance with the terms of your contract of employment. Some companies have deferred pay schemes, usually because there is a tax advantage, but you would have to elect to participate in one. If the company is 'banking' your overtime pay it, not you is earning the interest on the money. You can reasonably ask to be paid promptly.
2007-09-21 01:00:41 · answer #4 · answered by Paul M 3 · 0⤊ 0⤋
Unless the company has a very clear policy regarding "comp." time that they have in the handbook or published somewhere for all employees to be aware of, no. A "comp time" or "green time" policy is legal as long as they are clear in when wages will be paid. "All unused comp. time will be paid out at termination of employment or at 6 month intervals."
2007-09-21 07:48:19 · answer #5 · answered by hr4me 7 · 0⤊ 0⤋
I work flex time which means that I can "bank" hours so that I can take off sometimes when I need to without taking vacation, but to ask for payment at a later date, I don't think that's possible. At some companies, you can cash out unused vacation at the end of the year. You can contribute to a flexible spending account, but I think that money has to be set asside for somethign specific like medical expenses or child care.
2007-09-21 01:01:52 · answer #6 · answered by Allison P 4 · 0⤊ 1⤋
NO. It is not legal at all if you are an hourly employee.
However, there are some employers, like city and county governments, that do allow "comp" time or banked overtime.
Check out your state's wage and hour division for your particular case.
2007-09-21 01:49:44 · answer #7 · answered by leysarob 5 · 0⤊ 0⤋
just so long as you get paid in the same calendar year at the overtime rate - I don't see it being an issue. I've worked for public accounting firms that pay tax season overtime that way, because they don't get paid by the clients immediately, so theres a cash flow issue for them
2007-09-21 01:46:02 · answer #8 · answered by Anonymous · 0⤊ 2⤋
No you deserve to be paid promptly Employers cannot make up their own rules, they do not supercede the government. Ask your question to your state labor board.
2007-09-21 00:44:55 · answer #9 · answered by chante 6 · 0⤊ 0⤋
Unless it was in the contract you signed when you started your employment or you gave written permission for them to do so, all wages have to be paid, from one pay cycle to the next
2007-09-21 00:47:44 · answer #10 · answered by Daniel M 2 · 0⤊ 2⤋