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Overtime pay suit filed

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Deb Hall

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Overtime pay suit filed

by Deb Hall » Wed Nov 21, 2018 4:27 pm

https://www.bizjournals.com/louisville/ ... j=85151511

It's an interesting question. If you own multiple restaurants and have employees working in 2 locations in a week, are they entitled to overtime pay when they work more than 40 hours total? .
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Mark R.

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Re: Overtime pay suit filed

by Mark R. » Wed Nov 21, 2018 7:36 pm

I'm guessing it kind of depends on how your organization is set up. If each of the restaurants is set up as a separate business unit, has its own payroll system, tax ID etc. I'm guessing that you wouldn't have to pay overtime for combined work of both units. However, if all of the items I mentioned above are shared between the restaurants then it seems logical that you would be required to pay OT when an employee works more than 40 hours in a week.

I wonder how some of the other "local chains" handle this issue. I'm sure the same thing happens with Fernando in his restaurants as well as some of the other ones.
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Robin Garr

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Re: Overtime pay suit filed

by Robin Garr » Wed Nov 21, 2018 7:49 pm

Ha! I just came to post Chris Ott's story on this from WDRB. I dunno. I'm not a lawyer, but having the same owners operate two restaurants with the same name under separate LLCs so they can screw their employees looks mighty sketchy to me, and I won't be surprised if the court agrees.

http://www.wdrb.com/story/39520452/feds ... violations
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Re: Overtime pay suit filed

by Eric Hall » Thu Nov 22, 2018 12:28 am

I’m no lawyer but I operate a business with multiple locations with two separate LLCs. The LLCs have separate partners and ownership. Since our locations are 30+ miles apart, we have rarely shared employees.

It’s an interesting case for sure. How are the two managed/scheduled etc? Did they regularly schedule an employee 30 hours at one location and 30 at the other? Or did they require an employee to work at the other location once they hit 40 hours? Those two instances would show collusion between the separate entities. I’m guessing the large dollar amounts signifies that it wasn’t an isolated incident.

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