Pyramiding of overtime (OT) & other OT related issues are always a popular topic among business owners & operators. See my earlier posts here. Below is one reader’s recent questions & concerns going on at their unionized company. Any identifying information has been changed.
Quick question, the company i work for has a cba [collective bargaining agreement] the only statement regarding pyramiding of overtime is found in the overtime section; states that there will be no pyramiding of overtime. The cba also say employees that work past their scheduled shift will receive ot,and also states that sat and sun will be premium time payed at 1.5 rate of pay. We have employees staring their scheduled shifts on sun, receiving prem pay for that day,10 hours ,then working 3 more 10’s at regular pay.then thurs work is 8 hours all scheduled, however, thurs is being paid at straight time, when colorado has a over forty law is this correct? all time being in the same week……thanks norm
My response: It sounds like something funny is going on relative to Thursday because based on what you’ve said, the Thursday shift starts after the 40th hour, so overtime would kick in then. I don’t see how paying OT on Thursday would be pyramiding if employees are getting paid time & a half based on their regular rate of pay (not a premium rate). Generally, pyramiding occurs when someone tries to get premium rates for straight time or for normal overtime (I.e., the time & a half rate at the regular rate of pay). In other words, if would be pyramiding if the premium rate paid on Sunday was included in the 1.5 calculation, instead of the regular rate (again, in other words, most OT is only paid based on the regular straight time rate of pay). Does this make sense?
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