[rene48]

My former employer never pays overtime. They are a small, family business who pays only cash for OT, as well as improper business practices as cash sales undeclared etc. My brother still is there and is owed years of correct OT- I told him to report them to IRS, and Labor but he knows he will be in trouble too. I think they need to be reported- the business is closing next year, the property has been sold, and there will be no recourse after it is sold. Whatshould I do? This is in NYS. Thanks:)

[Fr_Chuck]

Not every business has to pay overtime, you need to explain in more detail. Here is a list from the federal government site that explains some of it


The following are examples of employees exempt from both the minimum wage and overtime pay requirements:

Executive, administrative, and professional employees (including teachers and academic administrative personnel in elementary and secondary schools), outside sales employees, and certain skilled computer professionals (as defined in the Department of Labor's regulations); 1

Employees of certain seasonal amusement or recreational establishments;

Employees of certain small newspapers and switchboard operators of small telephone companies;

Seamen employed on foreign vessels;

Employees engaged in fishing operations;

Employees engaged in newspaper delivery;

Farm workers employed on small farms (i.e. those that used less than 500 "man‑days" of farm labor in any calendar quarter of the preceding calendar year); and

Casual babysitters and persons employed as companions to the elderly or infirm.
The following are examples of employees exempt from the overtime pay requirements only:

Certain commissioned employees of retail or service establishments;

Auto, truck, trailer, farm implement, boat, or aircraft salespersons employed by non‑manufacturing establishments primarily engaged in selling these items to ultimate purchasers;

Auto, truck, or farm implement parts‑clerks and mechanics employed by non‑manufacturing establishments primarily engaged in selling these items to ultimate purchasers;

Railroad and air carrier employees, taxi drivers, certain employees of motor carriers, seamen on American vessels, and local delivery employees paid on approved trip rate plans;

Announcers, news editors, and chief engineers of certain non‑metropolitan broadcasting stations;

Domestic service workers who reside in their employers' residences;

Employees of motion picture theaters; and

Farmworkers.
Certain employees may be partially exempt from the overtime pay requirements. These include:

Employees engaged in certain operations on agricultural commodities and employees of certain bulk petroleum distributors;

Employees of hospitals and residential care establishments that have agreements with the employees that they will work 14‑day periods in lieu of 7‑day workweeks (if the employees are paid overtime premium pay within the requirements of the Act for all hours worked over eight in a day or 80 in the 14‑day work period, whichever is the greater number of overtime hours); and

Employees who lack a high school diploma, or who have not completed the eighth grade, who spend part of their workweeks in remedial reading or training in other basic skills that are not job‑specific. Employers may require such employees to engage in these activities up to 10 hours in a workweek. Employers must pay normal wages for the hours spent in such training but need not pay overtime premium pay for training hours.

[ScottGem]

As Chuck points out, not every position is subject to OT. But since the company is closing and I assume, your brother will be out of a job then, I would not let this go. Go to your local NYS Dept of Labor office and talk to a counselor there. They can advise whether you have a valid grievance or not.

P.S. The IRS doesn't necessarily have jurisdiction here. They would only be involved if the company was not paying the correct taxes. However, if they aren't paying valid OT, then they may not be reporting the correct Social Security and Medicaid taxes.

[rene48]

Your thoughts did help. This industry does require OT, they just do not to save money.
I think I must report them to the IRS since I know they do not report all sales. You see, they brag about what they do and with what they get away.
Businesses that do this hurt us all.
I wanted to do this with anonymity, so I will write a letter to NYS dept of labor and the IRS- online requires a name, and I do not want trouble from them- only that they get reviewed.

[Fr_Chuck]

Yes, I will note that if they have been paying overtime in "cash" then you need to have been reporting that overtime on your income also. If not as they investigate that they were not paying proper overtime, they will also match up the fact that many people have received cash payments and not paid income tax on those money also.

I have seen ( first hand) in a company in OK where employess turned in an company for certain pay violations and the employees ended up owing and being hurt the worst.

So as he reports them, for all the cash he received as OT, will or needed to have been also declared as income, if not he may find himself owing the IRS not only the tax but fines and penalties for not declaring the income.

Not saying you should not report them, but know what can or could happen

[rene48]

POINT WELL TAKEN! Opening a Pandora's box may not be good- one day someone will slip and that will be that! Thanks!