Over time pay

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Over time pay

If a subcontractor’s employees work over 8 hours in a single day, let’s say 16 hours, and the subcontractor charges the company an overtime rate for those 8 extra hours worked, does the subcontractor have to pay it’s employees overtime wages for those 8 hours, even though the employees only worked a total of 35 hours in a 7 day period? In other words, since the subcontractor charged a company for 8 hours of overtime per worker, do they have to pay their employees overtimes wages for that 8 hours even though they didn’t work over 40 hours in a work week?

Asked on October 20, 2019 under Employment Labor Law, Minnesota

Answers:

SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 2 years ago | Contributor

No, what a subcontractor charges a company has no legal relationship to what they have to pay their employees; the subcontractor can charge all sorts of premiums or additional charges, etc. which it does not have to pass on to its employees. It's employees are only entitled to overtime when working more than 40 hours in a single workweek.


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