Twelve Common Errors in Overtime Pay: Multiple Employers

Kevin D. Fitzpatrick, Jr. : March 22, 2012 1:26 pm

The Fair Labor Standards Act (FLSA) establishes minimum wage, overtime pay, record-keeping and youth employment standards for workers in the private sector and government.  Covered non-exempt workers are entitled to overtime pay of at least 1.5 times regular pay if they work more than 40 hours per week.

Another common problem area:

10. Multiple Employers

As a general rule, companies with annual earnings of $500,000-plus are subject to the FSLA. Employers that operate with multiple corporate identities may try to avoid the FSLA by appearing to be a set of smaller companies.  Sometimes an employer may pay employees from more than one account so that no one paystub shows more than 40 hours a week.  However, the law sets out criteria for when multiple corporations will be considered a single employer under the FLSA (related activities, unified operations or common control, and a common business purpose). In a recent case, the employer had two corporations, one for his landscaping business and one for his landscape lighting business.  The two companies had sufficient connections to be considered a single employer under the FLSA.

If you are an employer or an employee and have questions about the Fair Labor Standards Act, call the FLSA experts at DeLong, Caldwell, Bridgers, Fitzpatrick, & Benjamin, LLC, Charles Bridgers and Kevin Fitzpatrick, at (404) 979-3150 for a free consultation.  For more information, check out our publication,  Are You Entitled to Overtime Pay?

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