Is a company required to pay contract labor time and a half for any hours over 40 in a work week?

Posted  05-11-2011

Ann Kiernan replies:

Yes, assuming that they are performing non-exempt work. There is no special rule for contract workers. They’re classified the same as they would be if they were regular, full-time staff. This question tripped up retail giant Target a few years ago when an audit by U.S. Labor Department showed that a janitorial contractor had placed maintenance workers in a special category and didn’t pay them overtime. To settle the audit, the contractor paid $1.9 million in back pay and penalties.


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About the Author:

Ann Kiernan has litigated claims of wrongful discharge and discrimination before state and federal courts and administrative matters before the New Jersey Division on Civil Rights, the National Labor Relations Board and the Equal Opportunity Employment Commission, representing both employers and employees. Ms. Kiernan co-hosted The Employee Rights Forum, a weekly radio call-in show reaching up to a half-million listeners in the New York metropolitan area, and her articles on employment law have been published in many books and magazines. Both as a firm partner and as a director, Ms. Kiernan gained solid experience in management and human resources compliance. She has worked with Fair Measures since 1997.