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Can You Offset Previous Overpayment Against Overtime?

SITUATION

ABC Manufacturing’s business hours are from 8 am to 4:30 pm. Myra Gretts, a salaried employee, has to drop off her kids at daycare and can’t make it in on time. But Myra is a valued member of the team and management cuts her some slack. Myra is allowed to show up for work at 9 am and still get paid for a full 40-hour week. Later, when her relationship with the company turns sour, Myra sues ABC for unpaid overtime. The company admits that in December, Myra put in 19 hours of overtime by working more than 40 hours in a week. But the company claims that she’s not entitled to overtime. Its argument: The extra pay that Myra did receive for work she didn’t actually do during the rest of the year, (that is, full pay for a 40-hour week even though she worked only 35 hours) was much greater than the 19 hours worth of overtime she did.

QUESTION

Is Myra entitled to overtime?

A. No because she’s a salaried employee.

B. No because the pay for work she didn’t perform cancels out the o...

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