WAGE & HOUR


Alternative Work Arrangements

Alternative work schedules can take many forms and have become more common in the workplace, but differences in state requirements and overtime laws complicate their application. Some payroll systems may not accurately track alternative work arrangements, resulting in incorrect overtime payments. In other cases, alternative work arrangements are deemed invalid, requiring the re-calculation of overtime payments.

THE CLAIM

The validity of alternative work arrangements at a national telecommunications company was challenged. Employees in California had alternative schedules of 10 hours a day for 4 days a week (4/10) and 12 hours a day for 3 days a week (3/12). They alleged they were not being properly compensated for overtime.

OUR FINDINGS

We reviewed time and pay records in claimed non-overtime owed 4/10 and 3/12 work arrangements. We then estimated potential damages if these alternate schedules were found to violate overtime laws. Additionally, we identified overtime payments made under the alternative work arrangement that were not required and could be applied as offsets to the outstanding liability.

THE CLAIM 2

A manufacturing employer who uses a 9-80 alternative work schedule discovered they were incorrectly paying overtime and double time hours. The employer wanted to conduct an audit to identify the magnitude of the issue and to be able to back pay their employees who were underpaid in pay periods. 

OUR FINDINGS 2

After learning about the employer’s 9-80 alternative work schedule, we reviewed the employees’ time and pay data. We were able to identify the employee pay periods where the overtime and double hours were not paid correctly. We generated a count and percentage of employee pay periods that were underpaid, created examples for the client to show them how overtime and double time was miscalculated, and delivered a list of employees with the amount each employee should be back paid to help mitigate risk for litigation.

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Welch Consulting Practice Areas

Expert Services in Economics and Statistics.