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Business Law: Overtime Pay

1.) Employers generally seek to minimize costs related to overtime work. What are some options for accomplishing this goal in a lawful manner? How should employers who need employees to be on-call structure these arrangements to conform with the law while minimizing overtime liability?

2.) Would you recommend that an employer with a 401(k) plan automatically enroll all of its employees in that plan? If so, how should this be done?

Solution Preview

1. Employers seek to minimize costs related to overtime work. The options for accomplishing this goal in a lawful manner are to consider the source of overtime in the business. First, identify employees who are abusing the overtime system and warn them of the abuse. Second, overtime costs can be reduced legally by improved time management and scheduling of employees. Third overtime costs can be reduced if the means of production or (machinery) is increased or the number of employees is increased. This should be done only after a proper study of the business process. Fourth, overtime costs can be reduced in a lawful manner by employing additional staff, or subcontractors. Fifth, overtime costs can be reduced by training the workers to work with new technology. Sixth, the ...

Solution Summary

The answer to this problem explains cost reduction methods relating to overtime work and automatic 401(k) enrollment. The references related to the answer are also included.

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