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
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
| Bette Robin 1-877-DrRobin Dentist, Attorney, Real Estate Broker 1-877-377-6246 |
 | |  | |  | |  | |  |
DrRobin@BetteRobin.com
17482 Irvine Blvd., Ste. E
Tustin, CA 92780
Tustin, CA 92780
Call:
Fax:
Fax:
877 DrRobin
714-421-4407
714-398-8808
714-421-4407
714-398-8808
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