While the Chinese overtime method is legal, it doesn’t apply to every employee. If an employer pays you half-time without meeting the above criteria, you can sue them for wage and overtime violations.
Is Chinese overtime legal in Virginia?
So, employers in Virginia may no longer use the Fluctuating Workweek Method (aka Chinese Overtime) as a pay scheme to reduce the amount of overtime owed to workers.
What is the term Chinese overtime?
Chinese overtime, also referred to as the fluctuating workweek, is a method of paying overtime to an employee when the employee works over 40 hours a week, without destroying some of the benefits of having the employee be an “exempt employee.”
Can employer refuse to pay overtime?
There’s no legal right to pay for working extra hours and there are no minimum statutory levels of overtime pay, although your average pay rate must not fall below the National Minimum Wage. Your contract of employment should include details of overtime pay rates and how they’re worked out.
Is it legal not to pay overtime after 40 hours?
Conclusion. In summary, it is not illegal to refuse making overtime payments but this is dependent on whether or not your employees’ modern award or agreement sets out overtime rates do not apply. Otherwise, you must pay your employees overtime or penalty rates, which you must legally do so.
Is Chinese overtime legal in Florida?
Chinese overtime is only legal if the following requirements are met: The employee must be paid a fixed salary, regardless of whether they work 40 hours in a work week. … The employee’s regular rate of pay used to calculate their half-overtime rate must not fall below federal minimum wage requirements.
Do I get paid more for overtime?
Yes, California law requires that employers pay overtime, whether authorized or not, at the rate of one and one-half times the employee’s regular rate of pay for all hours worked in excess of eight up to and including 12 hours in any workday, and for the first eight hours of work on the seventh consecutive day of work …
What does Chinese pay mean?
Chinese overtime, also known as the fluctuating workweek method, allows an employer to pay an overtime rate of half the employee’s regular rate for all hours over 40 worked in a week.
Does Pepsi use Chinese overtime?
Pepsi Beverages Company has recently joined a long list of employers who are being sued for paying what some employee’s refer to as “Chinese Overtime.” Yes, it’s not the best name for it. … For example, if someone makes $20 per hour, they get $30 per hour for overtime.
What is variable overtime pay?
When non-exempt employees are paid a salary for varying hours, their additional overtime pay is computed each week by dividing the salary by the number of hours to obtain the “regular rate.” Then they are paid one-half the regular rate for the additional overtime hours.
How do employers avoid paying overtime?
The 5 Most Common Ways Employers Avoid Paying Overtime Rates
It involves asking an employee to do preparatory work, prior to starting their shift, or to perform other functions. The employee may be asked to clean a work area, answer telephones, or perform other tasks.