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Overtime hours/Holidays paid cash...what to do?

Discussion in 'Hardscaping' started by not happy, Sep 17, 2011.

  1. not happy

    not happy LawnSite Member
    Messages: 4

    I'm sorry this has nothing to do with Hardscaping, but I have a problem and I think some of you may have some good advice, and I'm also wondering if any other companies do this.
    I've been working for a hardscaping company for the past few months as a laborer. The company is pretty good, the work is great all of the guys I work with are awesome, but the owner is greedy and money hungry.
    Any time worked over 40 hours is paid cash at our regular hourly rate, which for me is $12.50 as well as holidays we get paid cash for 8 hours of work. Which you know it's great we get paid holidays, but It'd be nice to have it on the books as well as my overtime. That's going to mess with my unemployment, not to mention it's taking money out of my pocket. I usually get at least 10+ hours of overtime a week.
    the owner doesn't just do this with me, he does it with all of his other guys too, guys that have been there for 15+ years. I'm just wondering what you guys think about this, if I'm making a big deal out of nothing or if I should actually do something about it and what I could do. When you try to talk to the owner about the situation he just flat out says NO and walks away, doesn't even want to talk about the subject.
  2. PatriotLandscape

    PatriotLandscape LawnSite Bronze Member
    from MA
    Messages: 1,209

    The owner is not greedy or money hungry. You are a god damn laborer your lucky you get paid holidays.

    Be lucky you have a job. I would fire you if you worked for me.
    Posted via Mobile Device
  3. not happy

    not happy LawnSite Member
    Messages: 4

    thanks for your reply patriot, you've been very helpful.
    but as I said, I'm happy I get paid holidays, that's the least he can do for stealing money out of my pocket. I'd rather get paid correctly than get paid holidays.
  4. Darryl G

    Darryl G Inactive
    Messages: 9,500

    Your boss if violating both state and federal labor laws by not paying you 1.5 times your regular pay rate for overtime. You could file a complaint to your state and under law it would be illegal to retailiate against your for it, but do you really want to do that?

    What do you mean it's going to mess with your unemployment. Are you collecting now or you mean when you eventually get laid off for the winter.

    Overtime pay for holidays is not required unless specified in an employment agreement or collecitve bargaining agreement. If you're saying you get paid cash for holidays when you don't work...what the hell you complaining about??? Most hourly employees do not get paid for holidays at all! You're basically getting a cash bonus.
  5. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,576

    Patriot, this has to be one of the most unprofessional posts I've seen on this forum.

    Shame on you!

    Posted via Mobile Device
  6. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,576

    I would not worry bout the cash holiday pay. No biggie.

    As a professional I must dispense the PC response:
    1) it is illegal to compensate anyone without reporting the income to the IRS. so your employer is breaking the law if he's not reporting your earnings.
    2) it is illegal for YOU to not report all of your income. So you're violating the law by accepting the cash if you're neglecting to report the income.
    3) it is federal and state law for employers to Pay overtime to all employees who work more than 40 hrs in a week. This goes for salaried employees too, unless they're classified as management.

    And yes, your employer is being greedy. He is being greedy by not paying you the money that you ARE LEGALLY entitled to.

    And he is being greedy because he is saving himself from having to Pay more in workers comp insurance because his insurance rates are based on gross payroll.

    And he is being greedy because he is weaseling his way out of the company share of paying social security and Medicare on the income. And fed and state unemployment rates are based on gross payroll as well.

    This is how contractors are able to underprice work and get jobs.

    He is unethical.

    If you say anything to him - he's gonna eventually fire you very quickly.

    Posted via Mobile Device
  7. zturncutter

    zturncutter LawnSite Bronze Member
    Messages: 1,308

    Well put, another thing these knuckle head employers don't realize is that there liability insurance coverage is based on payroll and any under reporting is insurance fraud and the insurance company is not obligated to pay on any claims. Exactly what the insurance companies look for before paying a claim.
  8. DVS Hardscaper

    DVS Hardscaper LawnSite Fanatic
    Messages: 6,576

    The TC (topic creator) is gonna get flamed because he made mention of holiday pay. As he did fro

    But we contractors whine and cry about being underbid. And what the TC is writing about is exactly a way for a contractor to price work cheap.

    I use Paychex for my payroll processing. And for every paroll run, paychex breaks down all the liabilities. I could cry when I see how much the business must pay in SS and Medicare. Pay. Not just withhold.
    Posted via Mobile Device
  9. SoCalLandscapeMgmt

    SoCalLandscapeMgmt LawnSite Silver Member
    Messages: 2,117

    Bottom line is that he is breaking the law. It's up to you though to decide how you deal with the situation. You could be the guy who files the complaint with the labor board, which they will investigate, make him pay all of the back wages plus a fine and probably put him out of business. Or you can just be happy to have a job and continue to deal with the fact that the guy is a crook and is breaking the law. You had better assume though that if you do turn him in there is a significant chance that your employment will end with him. It's a tough spot to be in. Ultimately it's your call as to how you deal with it.

    Any ethical employer knows that you don't mess with employees pay or overtime. It's nothing more than a one way ticket to being out of business if you decide to play those kind of games. Personally, I'd love to see the guy get busted.... but that's only because I'm honest and I hate having to compete with guys who are dishonest and use it as a way to undercut the competition. My payroll runs me just under a million dollars a year and you can bet you ass that I pay every cent of overtime and payroll taxes that I am obligated to. Good luck with your dilemma..... I hope you figure something out!
  10. zedosix

    zedosix LawnSite Silver Member
    Messages: 2,665

    As seasonal workers (up here) we are not entitled to pay any holdiay pay. Vacation pay is separate, this is due based on 4% of gross salary. I personally do pay my guys for regular holidays because my men deserve it and basically without them I wouldn't be in the position I'm in today.

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