PayrollHRGuy
Senior Member
Overtime under both Federal and New York state law is time over 40 hours per week. So if someone works 50 hours per week they get 40 at their regular rate and 10 at the overtime rate. If 3 hours are removed from the time they work they drop to 47 hours which then is 40 hours at regular and 7 at overtime.I understand your concerns on how I presented this, I get it. Lets be clear, I am being sarcastic on the 3 hr lunch being expensive. My point is the employer assumes lunch is taken, fair enough. But why would it be taken from OT Pay? In a normal 9-5 lunch is within the standard 8-9 hr day not OT rate hours.
Heres an example:
Dad earns 30$ and Hr OT rate x 15 HRS a week = $450
Employer takes 3 hrs away at 30$ x 3 = 90$
$450 - 90 = 360.
90$ a week for lunch X 49 weeks (3 are vacation) = 4,410 dollars a year.
Am I missing something here aside from taxes you need to pay on that? Now multiply that by 20 employees who average around 15 hrs of OT a week. = $88,200
My advice to Dad is to follow his employer's instructions and take the required lunch hour.