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Overtime Earned Quiz

Does Extra Pay for Previous Work Cancel Overtime Earned Later?

SITUATION

Salaried employee Tara Misoo sues her employer, XYZ Manufacturing, for unpaid overtime. XYZ admits that Tara put in 19 hours of overtime by working more than 40 hours in a week during 2015. But it claims that she’s not entitled to overtime because Tara was paid for a full 40-hour week even though childcare obligations forced her to report an hour late to work each day. The 5 hours of extra pay, i.e., 40 hours for a 35-hour week, she received for each week in the year more than offset the 19 hours’ worth of overtime she put in during 2015, XYZ contends.

Great question! You don’t have to wait forever. The basic rule: You can terminate the employee if and when:

It becomes clear that there’s no reasonable prospect of her return; or
You can show that you’ve already waited long enough and that holding the position open any longer is an undue hardship.

EXPLANATION

The $64,000 question: How do you know when you’...

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