Is it legal for a company to discontinue time and half pay for Sundays if a 30 year emploee was previously grandfathered in when an OT pay adjustment was made.

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Is it legal for a company to discontinue time and half pay for Sundays if a 30 year emploee was previously grandfathered in when an OT pay adjustment was made.

The employer has worked Sundays since hire date and has always received time and a half for these days.

Asked on April 3, 2016 under Employment Labor Law, Oklahoma

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 8 years ago | Contributor

It is legal unless the 30-year employee had a written employment contract which guaranteed him this additional compensation. In the absence of a contract, a company is free to set its own compenstion, including overtime or premium pay, policies so long as those polices are at least equal to wage and hour law: e.g. the employee is paid at least minimum wage, and gets overtime when working  more than 40 hours in a week. So long as the company complies with the law, it is otherwise free to set whatever policies it likes; and furthermore, employers can change these policies, even long-standing ones, at will, and does not need to continue to do something simply because it previously  did it for many years.


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