Mixing
Working for two companies owned by the same person
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I've got a friend (in the Nashville, TN area) who is working for someone that owned a franchise and now opened up a second one. My friend was working 45 hours a week and got overtime, but now the owner has put them on both payrolls and splits their hours between the two, and therefore, doesn't have to pay overtime.
First, is there anything illegal about this? Second, does this maybe cost the owner more than paying 5 hours of overtime? I know there are hidden cost in having employees on the payroll. Does the owner maybe pay more in workers comp or anything? Just wondering if there's any incentive for the owner to only employ them at one company and just pay them the overtime, rather than maintaining them on two separate payrolls, even if it isn't necessarily illegal.
professionalism salary retail payroll
asked 10 mins ago
Hoopdady
1055
add a comment |Â
up vote
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I've got a friend (in the Nashville, TN area) who is working for someone that owned a franchise and now opened up a second one. My friend was working 45 hours a week and got overtime, but now the owner has put them on both payrolls and splits their hours between the two, and therefore, doesn't have to pay overtime.
First, is there anything illegal about this? Second, does this maybe cost the owner more than paying 5 hours of overtime? I know there are hidden cost in having employees on the payroll. Does the owner maybe pay more in workers comp or anything? Just wondering if there's any incentive for the owner to only employ them at one company and just pay them the overtime, rather than maintaining them on two separate payrolls, even if it isn't necessarily illegal.
professionalism salary retail payroll
asked 10 mins ago
Hoopdady
1055
You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago
add a comment |Â
up vote
0
down vote
favorite
up vote
0
down vote
favorite
I've got a friend (in the Nashville, TN area) who is working for someone that owned a franchise and now opened up a second one. My friend was working 45 hours a week and got overtime, but now the owner has put them on both payrolls and splits their hours between the two, and therefore, doesn't have to pay overtime.
First, is there anything illegal about this? Second, does this maybe cost the owner more than paying 5 hours of overtime? I know there are hidden cost in having employees on the payroll. Does the owner maybe pay more in workers comp or anything? Just wondering if there's any incentive for the owner to only employ them at one company and just pay them the overtime, rather than maintaining them on two separate payrolls, even if it isn't necessarily illegal.
professionalism salary retail payroll
asked 10 mins ago
Hoopdady
1055
I've got a friend (in the Nashville, TN area) who is working for someone that owned a franchise and now opened up a second one. My friend was working 45 hours a week and got overtime, but now the owner has put them on both payrolls and splits their hours between the two, and therefore, doesn't have to pay overtime.
First, is there anything illegal about this? Second, does this maybe cost the owner more than paying 5 hours of overtime? I know there are hidden cost in having employees on the payroll. Does the owner maybe pay more in workers comp or anything? Just wondering if there's any incentive for the owner to only employ them at one company and just pay them the overtime, rather than maintaining them on two separate payrolls, even if it isn't necessarily illegal.
professionalism salary retail payroll
professionalism salary retail payroll
asked 10 mins ago
Hoopdady
1055
asked 10 mins ago
Hoopdady
1055
edited 1 min ago
asked 10 mins ago
Hoopdady
1055
asked 10 mins ago
Hoopdady
1055
asked 10 mins ago
Hoopdady
1055
1055
You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago
add a comment |Â
You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago
You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago
add a comment |Â
2 Answers
2
active
oldest
votes
up vote
0
down vote
Without knowing the exact jurisdiction it's hard to comment on the legality of the situation.
However in the general case if the two franchises are seperate legal entities (regardless of whether they have the same owner) then what the owner has done is the correct way to do things.
answered 6 mins ago
motosubatsu
37.3k1697158
add a comment |Â
up vote
0
down vote
The big question is how is the company set up. The owner may have created two different companies, 1 per franchise, or 1 company for both.
If it's two different companies then legally he has 2 jobs that have nothing to do with each other (hence no overtime).
answered 5 mins ago
sevensevens
7,38131632
add a comment |Â
2 Answers
2
active
oldest
votes
2 Answers
2
active
oldest
votes
active
oldest
votes
active
oldest
votes
up vote
0
down vote
Without knowing the exact jurisdiction it's hard to comment on the legality of the situation.
However in the general case if the two franchises are seperate legal entities (regardless of whether they have the same owner) then what the owner has done is the correct way to do things.
answered 6 mins ago
motosubatsu
37.3k1697158
add a comment |Â
up vote
0
down vote
Without knowing the exact jurisdiction it's hard to comment on the legality of the situation.
However in the general case if the two franchises are seperate legal entities (regardless of whether they have the same owner) then what the owner has done is the correct way to do things.
answered 6 mins ago
motosubatsu
37.3k1697158
add a comment |Â
up vote
0
down vote
up vote
0
down vote
Without knowing the exact jurisdiction it's hard to comment on the legality of the situation.
However in the general case if the two franchises are seperate legal entities (regardless of whether they have the same owner) then what the owner has done is the correct way to do things.
answered 6 mins ago
motosubatsu
37.3k1697158
Without knowing the exact jurisdiction it's hard to comment on the legality of the situation.
However in the general case if the two franchises are seperate legal entities (regardless of whether they have the same owner) then what the owner has done is the correct way to do things.
answered 6 mins ago
motosubatsu
37.3k1697158
answered 6 mins ago
motosubatsu
37.3k1697158
answered 6 mins ago
motosubatsu
37.3k1697158
answered 6 mins ago
motosubatsu
37.3k1697158
37.3k1697158
add a comment |Â
add a comment |Â
up vote
0
down vote
The big question is how is the company set up. The owner may have created two different companies, 1 per franchise, or 1 company for both.
If it's two different companies then legally he has 2 jobs that have nothing to do with each other (hence no overtime).
answered 5 mins ago
sevensevens
7,38131632
add a comment |Â
up vote
0
down vote
The big question is how is the company set up. The owner may have created two different companies, 1 per franchise, or 1 company for both.
If it's two different companies then legally he has 2 jobs that have nothing to do with each other (hence no overtime).
answered 5 mins ago
sevensevens
7,38131632
add a comment |Â
up vote
0
down vote
up vote
0
down vote
The big question is how is the company set up. The owner may have created two different companies, 1 per franchise, or 1 company for both.
If it's two different companies then legally he has 2 jobs that have nothing to do with each other (hence no overtime).
answered 5 mins ago
sevensevens
7,38131632
The big question is how is the company set up. The owner may have created two different companies, 1 per franchise, or 1 company for both.
If it's two different companies then legally he has 2 jobs that have nothing to do with each other (hence no overtime).
answered 5 mins ago
sevensevens
7,38131632
answered 5 mins ago
sevensevens
7,38131632
answered 5 mins ago
sevensevens
7,38131632
answered 5 mins ago
sevensevens
7,38131632
7,38131632
add a comment |Â
add a comment |Â
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You should mention the country that you are in. There's nothing inherently illegal, but if the boss is doing it to avoid paying full salary, and has the employee working on a common task/job across both companies (rather than two different jobs), it could very well be considered fraud. Your friend should quit though, as that's obviously an abuse of power by the boss.
– Matt
5 mins ago
@Hoopdady - you should update the question to include your location. I don't think it matters here (UK), but may well do in the US, where I believe employers must pay healthcare (Obamacare?) over a certain number of hours per week. (Matt beat me to it by a minute).
– Justin
3 mins ago
@Justin the location is Nashville Tennessee. I'll update the question
– Hoopdady
1 min ago