Q: I am a home-based employee of a large medical-equipment manufacturer. Before my first call of the day, I perform administrative duties. I am paid for that time. I also earn overtime when I work more than 40 hours a week. But because of a quirky overtime policy, I usually don’t receive all the pay I am owed. That’s because when we put in for overtime, the company expects us to deduct one hour of commuting time automatically. I have to do this even though I’m home-based, and I am home-based because my company structured the job that way. Is it legal to require me to deduct commuting time?
A: Your situation may fall into the penny-wise, pound-foolish category. Yes, the company saves money by deducting commute time for home-based employees, but it also violates labor laws, which could put it at risk for fines and audits.
It seems as though you are a non-exempt employee. That category of workers, who are usually hourly employees, have to be paid for all the hours they work. So if you worked all the overtime, you have to be paid for it.
“Deductions for hours worked can never be made because they’ve been worked,” said Irv Miljoner, of the U.S. Labor Department. “It’s a pretty clear principle.”
For more information, call the U.S. Labor Department at 866-487-2365.
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Carrie Mason-Draffen is a columnist for Newsday, a Tribune Co. newspaper. E-mail her at yourmoney@tribune.com.
