Carmagnola & Ritardi, LLC | Attorneys At Law

Experienced Employment Defense For New Jersey Businesses

Experienced Employment Defense For New Jersey Businesses

Do I have to pay remote workers overtime?

On Behalf of | May 5, 2021 | Employment Litigation

A new study reveals more than half of New Jersey workers are working from home. Only Utah has more at 59.9% compared to New Jersey’s 51.1%. By contrast, only 9.6% of Mississippi workers were doing the same.

Many workers have enjoyed the benefits of not having to commute to the office every day. However, some feel they have ended up working more hours than usual.

Working remote does not remove entitlement to overtime

New Jersey law gives most employees the right to one-and-a-half times their usual pay rate for any hours they work above 40 hours in a week. It still applies if they are working from home.

Specific categories of employees are not entitled to overtime, regardless of whether they are in the office or remote. These can include those  employed in outside sales staff, administration or as executives.

Track timekeeping to reduce the chance of false overtime claims

There are many systems and apps available which allow you to track when workers are working. If you have not already set these up, consider doing so. Working from home can come with significant distractions. A worker may think they are working more than they are because their computer is on. Yet, when they deduce the time for interruptions by children, knocks at the door and other frequent distractions, it may be less than they think.

If you do not want your employees working longer than their regular hours, make sure they are aware, because you might still need to pay them if they do. Technology and keeping to a typical office day for the whole company can reduce the chance you need to pay unexpected overtime.

If an employee claims overtime you disagree with, seek legal advice. If you fail to understand how labor laws apply to a particular case, it could end up costing you more than if you had agreed to pay it.