My son works part-time at a shipping/receiving business. He was hired by an outside trucking company to work there. His co-workers who are actual employees of the shipping/receiving business are full-time. They are told that they cannot receive time-and-a-half for overtime because the company is from Tennessee and the contract (not a union contract) was signed under Tennessee rules. The company is in Georgia. (My son is not affected because he is hired from the outside and only gets about 32 hours at most per week.) I’ve never heard of this before. Is that true, or is the employer ripping them off?
— Concerned Parent, Georgia
That’s a novel excuse, but not a very good one.
Whether or not Georgia law applies, the vast majority of workers in the United States are covered by the federal wage and hour law, the Fair Labor Standards Act. States can provide stronger protections for workers – such as a higher minimum wage – but they cannot prevent federal law from applying to workers in their state covered by the Fair Labor Standards Act. Also, workers cannot give uptheir right to overtime pay under the Fair Labor Standards Act through the terms of their employment contract. As for the state laws, as a general rule states apply their wage and hour laws to any employee working in that state, regardless of where the employer is based.
Here’s something else about overtime that will probably interest you. There’s been a move recently in the U.S. House of Representatives to change overtime laws—purportedly to give workers more “flexibility” by offering comp time in lieu of overtime. Guess what—all the “flexibility” goes to the employer, and ultimately what it would amount to is an interest-free loan from you to your boss. The really insulting thing is how these congressional Republicans argue that trading real overtime pay for hours your managers might let you use at their convenience is somehow pro-worker. (Here’s a great video that explains everything you need to understand about the inaptly named Working Families Flexibility Act.)
It’s not going anywhere right now—President Obama has said that he would veto the bill if it makes it to his desk—but watch out for it. This is another example of a power grab by employers who have too much power over workers already. Think it’s time to start leveling the playing field? You might want to point your son here.