Nonprofit Employer Must Adhere to Payday Schedule

Q. Over the last four months, a private nonprofit agency that I work for has issued paychecks three to 12 days after the published payroll date. As a result, employees have incurred late charges on their own bills.

Since this is a nonprofit agency, are there any legal ramifications to the late payroll? If so, who would be responsible for any penalties associated with a late payroll? The executive director? The board of directors? Can employees be awarded interest or penalties on payroll monies that are received late?

--N.B., Huntington Beach

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A. An employer is not relieved of responsibilities under California law regarding wage payments merely because it is a nonprofit agency. Therefore, it must post and adhere to a schedule for paydays that also satisfies other legal requirements for when wages must be paid in relation to when they are earned.

An employer, including a manager, superintendent or officer of such an employer, may be guilty of a misdemeanor if he or she fails to comply with applicable paycheck laws. In addition, an employee who receives a late paycheck would theoretically have a claim against his or her employer, and could recover actual damages suffered from the failure to pay on a timely fashion, as well as attorney’s fees incurred in prosecuting his or her employer.

--Michael A. Hood

Employment law attorney

Paul, Hastings, Janofsky & Walker

Start of Workweek Is Key

Q. You recently wrote that employers are required to pay nonexempt employees 1 1/2 times the regular rate of pay for each hour of overtime worked after an eight-hour day or in excess of 40 hours per week.

I work as a nonexempt employee for a local space technology agency through a temporary services organization. Two months ago, I worked a 40-hour week and then put in 15 hours overtime on Saturday and one hour on Sunday. I was under the impression that I would be paid 1 1/2 times my regular rate of pay for the first eight hours on Saturday, then double time for the additional seven hours I put in on Saturday. I also thought I would be paid double time for the hour on Sunday.

However, the temporary agency told me their policy is to pay time and a half for those hours over 12 on Saturday and that I would only be paid time and a half for the hour of overtime for Sunday.

Are they allowed to have that policy? What can I do about it?

--S.A., Pasadena

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A. Your right to overtime compensation has probably been violated.

The only defense your employer might assert is that the workweek commences on Saturday, and thus overtime for that day of work accrues after eight hours of work on the Saturday. However, if the workweek commenced the previous Sunday or Monday, your rights may have been violated.

I suggest filing a claim for overtime with the California labor commissioner’s office and the Federal Wage and Hour Division of the Labor Department.

Before you file your claim(s), you should get a copy of the time slips you filled out for the week, especially for Saturday and Sunday. You should also obtain a copy of the employer’s policy on when the workweek begins. If a copy of the policy is not available, copies of your previous pay stubs should show when your workweek begins. In essence, you need evidence that the workweek begins on a Sunday or Monday.

Unless your employer was provided with a special exemption, I do not see how it can avoid paying you the overtime.

--William H. Hackel III

Employment law attorney

San Clemente

Company Can’t Take Miles

Q. Is it legal for a company to take away frequent-flier miles from employees? I’ve been told it is illegal, but my company says they paid for the ticket so they own the miles.

--C.B., Torrance

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A. The rules of most airline frequent-flier programs prohibit the assignment or transfer of miles, so an employer cannot force an employee to transfer miles to the employer’s account. However, an employer could require, as a condition of employment, that an employee use any miles accrued on company-paid business travel for future business travel.

Whether this is a wise move from an employee morale standpoint is another issue. Some employers who have imposed such a requirement have found that the negative impact on employee morale outweighed any cost savings realized.

--James J. McDonald Jr.

Attorney, Fisher & Phillips

Labor law instructor, UC Irvine

More on Overtime

Times on Demand has prepared three pamphlets based on the Shop Talk column. They contain answers to readers’ most-asked questions on overtime, unemployment insurance, terminations and medical leave, and job benefits. To order, call (800) 440-3441 and ask for Item 2826 for overtime; Item 2827 for unemployment insurance, terminations and medical leave; or Item 2828 for job benefits. Each pamphlet costs $5.41, plus 50 cents delivery. Please allow two to three weeks for delivery.

The Shop Talk column is designed to answer questions of general interest. It should not be construed as legal advice. If you have a question about an on-the-job situation, please mail it to Shop Talk, Los Angeles Times, P.O. Box 2008, Costa Mesa, CA 92626 ; dictate it to (714) 966-7873; or, e-mail it to [email protected] Include your initials and hometown.