Democratic Underground Latest Greatest Lobby Journals Search Options Help Login
Google

Time and a Half Wage Rate for Overtime: Industry Standard or Employment Law?

Printer-friendly format Printer-friendly format
Printer-friendly format Email this thread to a friend
Printer-friendly format Bookmark this thread
Home » Discuss » Topic Forums » Poverty Donate to DU
 
Boojatta Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 04:42 PM
Original message
Time and a Half Wage Rate for Overtime: Industry Standard or Employment Law?
Edited on Thu Sep-10-09 05:41 PM by Boojatta
Yes, this is an admission of ignorance. Is time and a half simply a conventional benefit, or is it mandated by law?

If it's mandated by law, then it seems that some people might slip through the cracks and not receive the benefits that the law is supposed to provide.

For example, consider the following simple scenario. A person works thirty-five hours per week for one employer (the "majority hours employer") and also works twenty hours per week for a completely different employer (the "minority hours employer"). For example, the person might be paid minimum wage for the majority hours job and need the additional income provided by the minority hours employer. In this simple scenario, we assume that the minority hours employer pays the person one and a quarter times minimum wage. Also, in this scenario, the person has no opportunity to increase the number of hours at either job. For example, the employer who pays minimum wage will not accept an offer to work fifty-five hours per week of work. For example, the employer who pays one and a quarter times minimum wage will not accept an offer to work forty hours per per week.

One possible solution (presuming that I'm not imagining a non-existent problem): an income tax credit that would increase net income after taxes to what the net income would be if any hours beyond the dividing line between regular hours and overtime hours were paid at the rate of at least 1.5 times minimum wage.

Alternatively, make a bigger change to the tax system. Reduce to zero the income tax payable for minimum wage work. After all, income tax isn't the only tax. Tax the part of an hourly wage that is above minimum wage. This policy would provide people who complain about the existence of a progressive income tax system with the option of completely avoiding income tax by finding jobs that pay minimum wage.

Edited to fix a small error in formulation of the ideas, and edited again to fix an error introduced by the first edit. The ideas remain unchanged, so no reply has the table cloth pulled out from under it.
Refresh | 0 Recommendations Printer Friendly | Permalink | Reply | Top
Cheney Killed Bambi Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 04:46 PM
Response to Original message
1. It's the law
Printer Friendly | Permalink | Reply | Top
 
Boojatta Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 05:13 PM
Response to Reply #1
3. Thank you.
Edited on Thu Sep-10-09 05:22 PM by Boojatta
Is the following also the law?

An overtime income tax credit increases the net income of a taxpayer who doesn't work overtime for any single employer, but who would be working overtime if all of the worker's weekly hours of work that earn taxable income were done for a single employer.

Calculate what the taxpayer's net income would be if the gross employment income were unchanged, and the total weekly hours of work were unchanged, and all hours of work were paid at the same hourly rate. Obviously there would be no change. However, that tells us the average hourly rate. The overtime rate is 1.5 times that rate.

Now, calculate what the taxpayer's net income would be if the overtime hours part of the amalgamated hours were paid at the overtime rate. The taxpayer is entitled to claim an overtime tax credit that ensures that the taxpayer's net income is exactly what it would be if the overtime hours part of the amalgamated hours were paid at the overtime rate.
Printer Friendly | Permalink | Reply | Top
 
mntleo2 Donating Member (1000+ posts) Send PM | Profile | Ignore Fri Sep-11-09 05:31 PM
Response to Reply #3
6. They get around this in one way ...
...If you are "salaried" meaning you get a lump amount, say, $2000 a month, then they can work you to death all they want and not be obliged to pay you one red cent more if you work more than 40 hours a week.

This is how some cheap slave laborers get more work for less.

Just thought I might add to this conversation ...

Cat In Seattle
Printer Friendly | Permalink | Reply | Top
 
liberalmuse Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 04:55 PM
Response to Original message
2. I thought the Bush cabal overturned that.
Oh hell, what do I know? He did so many heinous things while in office I found it almost impossible to keep up. Did he really fail in overturning this?
Printer Friendly | Permalink | Reply | Top
 
ThatPoetGuy Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 05:50 PM
Response to Reply #2
4. They overturned parts of it.
If I remember correctly, factory supervisors no longer receive time-and-a-half, under the law, but most other industries and positions do. Still a rotten change in the law.
Printer Friendly | Permalink | Reply | Top
 
ConcernedCanuk Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Sep-10-09 06:52 PM
Response to Original message
5. Slightly off-topic, but a true story from my past.
.
.
.

I worked legally for an employer for $7.50 an hour.

We had a verbal agreement that any overtime worked(and it ended up being considerable) would be paid CASH(under the table) at a rate of $5 an hour.

Not long after I left his employ for another, my new boss was talking to my old boss and asked him

"Is it true that you paid Dave(that's me)$7.50 an hour for the first 40 hours a week, and then $5 an hour after that?"

"SURE" he responded - "Think about it - he's tired, he's worn out - he's not worth as much!"

This was over 15 years ago - but I still find it amusing - there's a different sort of logic going on there.

I still chuckle when I remember that conversation . .

Printer Friendly | Permalink | Reply | Top
 
Boojatta Donating Member (1000+ posts) Send PM | Profile | Ignore Sat Jul-02-11 12:40 PM
Response to Original message
7. Kick
Printer Friendly | Permalink | Reply | Top
 
Philippine expat Donating Member (412 posts) Send PM | Profile | Ignore Sat Jul-02-11 10:54 PM
Response to Original message
8. Its the law
however the 40 hours must be for the same employer
Printer Friendly | Permalink | Reply | Top
 
DU AdBot (1000+ posts) Click to send private message to this author Click to view 
this author's profile Click to add 
this author to your buddy list Click to add 
this author to your Ignore list Sun Apr 20th 2014, 05:04 PM
Response to Original message
Advertisements [?]
 Top

Home » Discuss » Topic Forums » Poverty Donate to DU

Powered by DCForum+ Version 1.1 Copyright 1997-2002 DCScripts.com
Software has been extensively modified by the DU administrators


Important Notices: By participating on this discussion board, visitors agree to abide by the rules outlined on our Rules page. Messages posted on the Democratic Underground Discussion Forums are the opinions of the individuals who post them, and do not necessarily represent the opinions of Democratic Underground, LLC.

Home  |  Discussion Forums  |  Journals |  Store  |  Donate

About DU  |  Contact Us  |  Privacy Policy

Got a message for Democratic Underground? Click here to send us a message.

© 2001 - 2011 Democratic Underground, LLC