Overtime Rights for Employees Working for Multiple Shops Under the Same Management

Many employees experience situations where they work for one boss but under two different shops or businesses owned by the same owner. This raises important questions about overtime and how it is calculated. This article aims to clarify whether employees in such scenarios are entitled to overtime pay and the steps to take if their rights are not being honored.

Understanding Overtime and Legal Framework

The Fair Labor Standards Act (FLSA) in the United States sets the standards for minimum wage and overtime pay. Under the FLSA, employees are entitled to time and a half for every hour worked over 40 hours in a workweek. However, the definition of a workweek and employment situation can be complex, especially when dealing with multiple shops owned by a single entity.

Maintaining Separate Workshops vs. Unified Management

There can be multiple scenarios where an employee works for one boss but under two different shops. In the case where each shop has its own Federal ID or tax number, the Department of Labor (DOL) can still consider them a single unit if they are under the same management and control. Key aspects include:

Single Management: Do the two shops have the same owner or manager? If the same person is managing both, it might be considered a single entity for FLSA purposes. Control and Management: Is there a unified approach to how work is assigned and managed across the two shops? Accruing Overtime: Does the employee's work span across the two shops, or is it predominantly done within a single physical location?

Work Hours and Unemployment Benefits

It's important to note that the cumulative work hours across both shops should be considered. For example, if an employee works 20 hours in one shop and 25 hours in another, the total of 45 hours for the week would determine whether they are due overtime. Similarly, unemployment benefits are typically calculated on an aggregate basis of total work hours.

Tax Implications

Tax caps, when applicable, should also be considered on an aggregate basis. If the combined income from both shops exceeds the cap, it must be reported as such, not separately for each shop.

Questions and Legal Advice

Your specific situation is outlined in your query. From the provided information, it seems that the two shops might be considered a single entity due to shared ownership. Therefore, any work hours at one shop should count towards the 40-hour workweek at the other shop.

Here are important points to consider before taking any action:

Work Hours: Are you working more than 40 hours a week in the combined time across both shops? Overtime Calculation: How is travel time being accounted for? Is it included in the work week? Reporting and Documentation: Maintain detailed records of your work hours, travel time, and any correspondence with the employer.

Whether you should dispute the lack of overtime pay is a personal decision. Here are some steps you can take:

Discuss the issue with your employer. Seek guidance from the Wage and Hour Division of the U.S. Department of Labor (DOL). Consider consulting an attorney specialized in employment law.

It is essential to understand that travel time should be included in your work week, unless specifically excluded by your employer's policy or applicable law. If the employer is indeed violating overtime laws, you may have grounds to file a complaint with the DOL. This could also affect your eligibility for unemployment benefits and other employee rights.

Remember, legal advice is not within my scope, so it's advisable to seek professional guidance in your specific situation. By following these steps, you can protect your rights and ensure fair compensation for your dedicated work.