Employer not paying last wages and not paying overtime

[NotClueless]

What is the name of your state (only U.S. law)? Michigan

I am researching for my daughter. She was working for a restaurant as a server. Her employer paid her once a month. They were NOT paying 1.5 on hours worked past 40 hours. She worked her last day Friday after I urged her to leave.

Can someone point me to how to calculate overtime for servers in Michigan? I know that it is not 1.5 times what she was paid, but rather some convoluted formula. Also, where can she go to report the overtime problem?

 

[cbg]

Was she tipped? Was she making minimum wage before tips?

 

[NotClueless]

I talked to her about how much she made and there were times where between what she made in tips and her wages, she wasn't making minimum wage.

Regardless, I know she is supposed to get paid when working past 40 hours in one week.

 

[NotClueless]

She was paid 2.65 per hour.

 

[cbg]

She definitely has to make the higher of state or Federal minimum wage, if different and she has to get OT for hours over 40. Michigan does not require that it be broken out hour by hour; if at the end of the 40 hours she has been paid the number of hours she worked times minimum wage, the law is satisfied - at least, as far as the first 40 hours is concerned. If I remember correctly MI allows for tip credit so her hourly wage PLUS tips has to total minimum wage times 40 (or however many hours less than 40 she worked). Off the top of my head I'm not sure tips figure into overtime but I'm sure the MI DOL can tell you.

 

[NotClueless]

bumping

Does anyone know how to calculate the overtime? I know it's something really funky.

Secondly, how long can a person take to go back after the employer?

Too bad that this is a union job.

 

[OHRoadwarrior]

If it was a union job, she would be paid contractually and could file a grievance. I assume you meant to say "not a union job".

 

[NotClueless]

If it was a union job, she would be paid contractually and could file a grievance. I assume you meant to say "not a union job".

You are correct. I typed too much in a hurry. Wish it was a union job to protect her rights. I think it's because they are immigrants and are unfamiliar with the laws.

 

[ArmyRetCW3]

MI minimum Wage

Here is some info on MI minimun wage...
http://www.michigan.gov/documents/cis/MWPosting.Optional_9_25_06_single_page_173925_7.pdf

Under federal rules she must be paid $2.13 per hr plust tips or the state mw if higher that the federal. For ot she must get paid the 50% higher of the federal ($7.25) or state ($7.40) in this case the $3.70 for every ot hr.

 

[TinkerBelleLuvr]

Here is some info on MI minimun wage...
http://www.michigan.gov/documents/cis/MWPosting.Optional_9_25_06_single_page_173925_7.pdf

Under federal rules she must be paid $2.13 per hr plust tips or the state mw if higher that the federal. For ot she must get paid the 50% higher of the federal ($7.25) or state ($7.40) in this case the $3.70 for every ot hr.

You are incorrect in your calculations of the overtime. After research, it's a convoluted formula. You calculate the tip credit on regular hours. Then, you calculate overtime based on 1.5 times state or federal minimum wage, whichever is higher. The OT rate will be THAT overtime rate minus the tip credit calculated.

For example, the server is paid $3.00 per hour. State rate is $7.40. Tip credit is $4.40. Overtime rate would be $11.10 (7.40 * 1.5). Then you subtract the tip credit of $4.40 from the $11.10 which gives you the overtime rate of $6.70. You understated the amount by $3.00 per hour.

http://www.restaurant.org/pdfs/legal/lps/employees_overtime.pdf

 

[ArmyRetCW3]

Ot amount for tip employee

Correction;

The employee must be paid the cash wages $2.65 for all hrs worked plus 50% of higher of the federal ($7.25) or state ($7.40) in this case the $7.40÷2=$3.70 for every ot hr. Or $2.65 for 40 hrs + $6.35 for every ot hr. The tips received do not come into the equation assuming she made sufficient tips to make the applicableminimun wage.

½ of M W
$2.65 Cash wages
+ $3.70 ($7.40÷2=$3.70) (50% of the applicable minimum wage)
= $6.35 Overtime rate (wage due for every overtime hr)

This is the easy math Cash wages + ½ of applicable minimum wage. No need to keep track of tips received but to verify if mw has been met.