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Loss of Bonus-Is it right?

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caterina2005

Junior Member
What is the name of your state? Florida

An issue arose at work last month regarding a payroll issue. Employees who work for a company both as a paid employee and paid contractor is eligible for overtime if over 40 hours. But the whole company was paying it as two seperate checks. A payroll clerk inquired me about it and ordered an audit. The audit was concluded that the employees were supposed to get OT and four years of back pay will be charged to my department for my employees. I asked if the other departments who does the exact same thing is having this happen to them. They told me no but that from now on out they are to follow the "new" policy regarding OT. My department is the only one being charged backpay. And this backpay screws up my numbers and I lost my 40% bonus for the year. The salary is okay but the bonus is what makes it worthwhile to stay.

Another thing that is really bothering me besides the fact I am the only one being penalized, is that I have only been there for a year. I am being charged four years worth. I am paying for the previous managers "errors".

Is this legal? Shouldn't this be a company wide audit? Is it fair that what was once policy is now changed and I am the only one being penalized for doing what was always done/taught?
 


pattytx

Senior Member
It is very unlikely that individuals can correctly be classified as both employees and independent contractors at the same time. If they are doing the job as an employee, all payments should be wages.

I'm a little confused though. Can you clarify? Are you saying that required OT was not previously paid and is now being paid? Is this the result of a DOL audit or other legally mandated back pay? If not, the employer can use whatever period of time they want.

I'd be interested in getting a few more details.
 

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