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Attention Drycleaners: Navigating Overtime Laws

As an owner of a drycleaning business, you understand the employees are the backbone to your success.  Their dedication to your business allows for a smooth operation, happy customers, and steady revenue. However, are you unintentionally breaking overtime laws? With so many ramifications for breaking them, it’s important for you to be knowledgeable about overtime laws and what they mean for your business.  As we go deeper into this topic, protect your operation, whether it be one store or a corporation, with a FabriCare Insurance Program.

According to American Dry Cleaner, many drycleaning business owners and operators wrongly assume that if an employee works overtime without advance approval, in violation of a written policy, they do not have to pay for that overtime.  However, if the employer knows or has reason to know that the employee will be working an extra shift or worked later than scheduled, the employer is liable and must pay for that overtime.  That individual can, however, discipline the employee for violating the policy.

In addition, employers are required to maintain accurate time records.  If the employer does not, and the employee sues for unpaid overtime, the employer will likely be penalized by paying twice as much in back payments.

What’s more, regardless of whether they are owners or managers, those who have the authority to hire, fire, and set pay rates and/or work schedules can be held liable for unpaid overtime and minimum wages, regardless of whether the company is an LLC, S corporation, or some other legal entity.

When it comes to illegal immigrants, the law is still skewed to protect the employee.  Should you be found liable for not paying overtime in court, you’ll still have to make back payments to them, regardless of their work history or residence status.

Finally, when it comes to exempt positions, the actual duties of the employee qualify him or her for overtime exemptions, not the job title.  For example, if you have a salaried employee in upper management who is still responsible for day-to-day tasks that your hourly employees receive, they are there entitled to overtime compensation.

Navigating these laws can be complex, and mistakes happen. Without the right insurance package, complete with employment practices liability, your business could suffer irreparable damage.

About Irving Weber Associates

At Irving Weber Associates, Inc., we understand what it takes to run a successful Dry Cleaner or Laundromat business, including investing in a comprehensive FabriCare Insurance Program to ensure that you are financially protected against legal claims. Our program includes specialty coverages including Environmental and General Liability, Property, Pollution Liability, Boiler & Machinery, Business Auto, and many more. For a detailed look at how we can safeguard your business with a custom-tailored package, please contact our experts today at 855-661-4557.