Bette Robin, DDS, JD 877 DrRobin
SELECT PRACTICE SERVICES, INC. / DENTAL PRACTICE SALES
SELECT PRACTICE SERVICES, INC. / DENTAL PRACTICE SALES
OVERTIME VIOLATIONS - A Costly Choice
Many of you probably read the August 22, 1996 Los Angeles Times
headline article on Glidewell Dental Laboratory’s alleged failure to pay
overtime compensation to its workers. The Times business section
proclaimed that the case against Glidewell Lab was ‘One of the State’s
Biggest’, reporting the Newport Beach dental laboratory possibly
cheated ‘employees out of almost $1.5 million.’
According to the paper, Glidewell is claiming that dental technicians are
exempt employees and therefore not eligible for overtime
compensation. However, the Times article states that the Department
of Labor found most of the technicians at Glidewell are immigrants,
earning less than $12.00 per hour and that their work is basically
manual labor and does not meet the legal tests for exempt employees.
The most frequent ‘emergency’ calls I receive are from dentists who
have just
received a Department of Labor letter demanding overtime violation
compensation.
As you know, California differs from almost all of the other states in that
overtime must be calculated on a daily basis, with overtime due on
hours worked over 8 in a single work day and/or for hours over 40 in a
single work week. Many dentists who call me with the dreaded letter
want to creatively define the law as requiring overtime per pay period,
per two week period or have some private agreement with their
employees.
But the Department of Labor doesn’t get too creative. I imagine they’ve
heard it all by now. So, because of the frequency of this problem and
the publicity the subject receives even in our local papers, I thought it
deserved review so you too don’t get caught in this trap for the unwary.
There are three legal ways to classify employees as exempt and avoid
costly overtime compensation: a professional exemption (associate
doctor), administrative exemption (sometimes a ‘true’ office manager)
and an executive exemption (not applicable in the dental office. For
dental office employees, by and large, the law is clear. Advisory
opinions have been issued on the exempt/non-exempt status of
associate dentists (exempt) and dental hygienists (non-exempt, except
in isolated instances such as running a dental hygiene program at a
teaching university). Front office and clinical staff are clearly non-
exempt under the law. The only murky category is office managers,
whose job duties must be analyzed on a case-by-case basis. As a
review, consider the following chart.
Associate Dentist Exempt No overtime necessary
Dental Hygienist Non-Exempt Pay overtime
Front Office Non-Exempt Pay overtime
Dental Assistant Non-Exempt Pay overtime
Office Manager Usually non-exempt, case by case determination
necessary
Second, private ‘agreements’ are completely illegal, having no force or
effect under the law. Because of the potential unconscionable effect
and the unequal bargaining power between employers and employees,
employment rights cannot be contracted away. This includes the
improper implementation of a flexible work arrangement or alternate
work week. And, as you can probably imagine the mere existence of
private arrangements give the appearance of guilt under the eyes of the
law.
So, what can you do? The most effective solution is to play the
necessary legal hopscotch and legally implement a flexible work
arrangement into your practice. Under Wage Order 4-89 governing
dental offices, these arrangements allows up to 40 hours of work a
week in 6 days without requiring the payment of overtime.
But let me stress again that a simple written or verbal agreement with
your employees is not enough. You must precisely follow the letter of the
law, or your agreement is completely null and void. The agreement
involves a series of disclosures and staff meetings designed to
thoroughly inform your employees of their rights and what they are
giving up.
Second, remember this is an election year - a perfect time to support
Cal-D-Pac and to hold your own state legislators accountable in their
support of a 40 hour work week making it easier and less expensive to
do business in California. Because we are professionals, it is relatively
easy to gain an audience with our representatives, express our
opinions and donate to those who support our ability to cost effectively
run our businesses in California.
Ignorance is never an excuse. Overtime violations are a costly choice
usually involving the payment of overtime to all past employees for the
last four years, interest and penalties. It’s an avoidable cost and a risk
you can’t afford.
© Bette Robin, DDS, JD 10/96
headline article on Glidewell Dental Laboratory’s alleged failure to pay
overtime compensation to its workers. The Times business section
proclaimed that the case against Glidewell Lab was ‘One of the State’s
Biggest’, reporting the Newport Beach dental laboratory possibly
cheated ‘employees out of almost $1.5 million.’
According to the paper, Glidewell is claiming that dental technicians are
exempt employees and therefore not eligible for overtime
compensation. However, the Times article states that the Department
of Labor found most of the technicians at Glidewell are immigrants,
earning less than $12.00 per hour and that their work is basically
manual labor and does not meet the legal tests for exempt employees.
The most frequent ‘emergency’ calls I receive are from dentists who
have just
received a Department of Labor letter demanding overtime violation
compensation.
As you know, California differs from almost all of the other states in that
overtime must be calculated on a daily basis, with overtime due on
hours worked over 8 in a single work day and/or for hours over 40 in a
single work week. Many dentists who call me with the dreaded letter
want to creatively define the law as requiring overtime per pay period,
per two week period or have some private agreement with their
employees.
But the Department of Labor doesn’t get too creative. I imagine they’ve
heard it all by now. So, because of the frequency of this problem and
the publicity the subject receives even in our local papers, I thought it
deserved review so you too don’t get caught in this trap for the unwary.
There are three legal ways to classify employees as exempt and avoid
costly overtime compensation: a professional exemption (associate
doctor), administrative exemption (sometimes a ‘true’ office manager)
and an executive exemption (not applicable in the dental office. For
dental office employees, by and large, the law is clear. Advisory
opinions have been issued on the exempt/non-exempt status of
associate dentists (exempt) and dental hygienists (non-exempt, except
in isolated instances such as running a dental hygiene program at a
teaching university). Front office and clinical staff are clearly non-
exempt under the law. The only murky category is office managers,
whose job duties must be analyzed on a case-by-case basis. As a
review, consider the following chart.
Associate Dentist Exempt No overtime necessary
Dental Hygienist Non-Exempt Pay overtime
Front Office Non-Exempt Pay overtime
Dental Assistant Non-Exempt Pay overtime
Office Manager Usually non-exempt, case by case determination
necessary
Second, private ‘agreements’ are completely illegal, having no force or
effect under the law. Because of the potential unconscionable effect
and the unequal bargaining power between employers and employees,
employment rights cannot be contracted away. This includes the
improper implementation of a flexible work arrangement or alternate
work week. And, as you can probably imagine the mere existence of
private arrangements give the appearance of guilt under the eyes of the
law.
So, what can you do? The most effective solution is to play the
necessary legal hopscotch and legally implement a flexible work
arrangement into your practice. Under Wage Order 4-89 governing
dental offices, these arrangements allows up to 40 hours of work a
week in 6 days without requiring the payment of overtime.
But let me stress again that a simple written or verbal agreement with
your employees is not enough. You must precisely follow the letter of the
law, or your agreement is completely null and void. The agreement
involves a series of disclosures and staff meetings designed to
thoroughly inform your employees of their rights and what they are
giving up.
Second, remember this is an election year - a perfect time to support
Cal-D-Pac and to hold your own state legislators accountable in their
support of a 40 hour work week making it easier and less expensive to
do business in California. Because we are professionals, it is relatively
easy to gain an audience with our representatives, express our
opinions and donate to those who support our ability to cost effectively
run our businesses in California.
Ignorance is never an excuse. Overtime violations are a costly choice
usually involving the payment of overtime to all past employees for the
last four years, interest and penalties. It’s an avoidable cost and a risk
you can’t afford.
© Bette Robin, DDS, JD 10/96
DrRobin@BetteRobin.com
17482 Irvine Blvd., Suite E
Tustin, CA 92780
Tustin, CA 92780
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DrRobin@BetteRobin.com
17482 Irvine Blvd., Suite E
Tustin, CA 92780
Tustin, CA 92780
877 DrRobin
Tele:
714.421.4407
Fax:
714.398.8808