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Does anyone know exactly how to define Chinese Overtime? What differentiates CO from the formula used to define payroll based on a fixed salary for fluctuating hours for non-exempt?
We have 4 diff
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Chinese Overtime
posted at 8/1/1999 10:45 PM EDT
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Posts: 63
First: 8/1/1999
Last: 8/31/2000
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Does anyone know exactly how to define Chinese Overtime? What differentiates CO from the formula used to define payroll based on a fixed salary for fluctuating hours for non-exempt?
We have 4 different opinions on this subject and no one seems to be able to come up with a clear definition. All I know is that Chinese Overtime is illegal, according to the DOL wage and hour division. But how do you determine whether or not the method you use is legally compliant and fair to the employee? Please respond in layman's terms as I am still in the learning process. Any information would be very much appreciated. Thank you.
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Chinese Overtime
posted at 8/2/1999 6:21 AM EDT
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Posts: 946
First: 6/14/1999
Last: 12/14/2005
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What is Chinese Overtime? If you want to determine if the method that your company is using to determine what constitutes overtime and how to calculate the rate of payment, then contact the Wage and Hour Division of DOL, "surf" the web because their are plenty of sites that give some descripiton of time that constitutes work and how to calculate overtime, get to a library or book store to find a publication that will give you the information (it's out there!)
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Chinese Overtime
posted at 8/3/1999 2:28 AM EDT
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Posts: 2217
First: 6/16/1999
Last: 12/13/2001
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I've never heard the term. However, the legality of your compensation system just requires an analysis of its provisions which, unfortunately, I cannot discern from your posting.
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Chinese Overtime
posted at 8/3/1999 4:05 AM EDT
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Posts: 63
First: 8/1/1999
Last: 8/31/2000
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To give a better definition, "Chinese Overtime" is described as paying someone less than their regular pay, i.e. Salary set at 420 week for 40 hours,10.50 hour. When 45 hours are worked, the weekly amount would be divided by 45 hours to get hourly rate, 9.33, divide that in half, 4.67, multiply by 5 hours, 23.35, total pay is $443.35.
In standard pay, 45 hours at 10.50 an hour, when using time and one half for overtime, totals 498.75, a difference of 55.40.
According to DOL, "Chinese Overtime" is illegal, in the essence that, "the more you work, the less you earn."
However, according to my research of Rule 778, I have found several items to negate the computation of "CO" and at the same time, several items that back it up.
I have never before heard this term, and am afraid I may lose a few very good employees that seem to be making less on salary, with their new promotion, than when they were hourly 'underlings.' I need clarification, and fast please.
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Chinese Overtime
posted at 8/3/1999 11:57 PM EDT
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Posts: 323
First: 6/15/1999
Last: 9/9/2011
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Are you saying these staff went from non-exempt to exempt?
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Chinese Overtime
posted at 8/4/1999 1:39 AM EDT
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Posts: 63
First: 8/1/1999
Last: 8/31/2000
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Not at all. They are still considered non-exempt, but they went from hourly standard to salary Chinese Overtime. If that makes any sense.
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