An employee worked a substantial amount of overtime (documented) while the company was in search of a new CEO. The employee was never invited to work the overtime, yet did some of the functions that the CEO was responsible. A request was issued to the board of directors by the employee requesting compensation for the time worked, during the time while there wasn't a formal CEO in place (who handles such requests.)
If a non-exempt employee is performing work and the employer knows or should know if it, the employer must pay the overtime. If the work is against company policy, the employer can discipline the employee. But if someone is doing the work of a ceo, is this person an exempt employee under the admin exemption? Perhaps. But if a mail clerk or secretary is going the work of the CEO for a week, that employee should still be eligible to be paid their overtime wages. Sometimes work has to be done, so employees do their job and put in extra hours for the benefit of the company or the person's own position. If the employee was exempt or in an exempt position, then working overtime would of course not entitle the person to premium pay. If the employee was an hourly paid employee, even if not premium pay, still the employee worked hours and should be paid for the hours. If there's an express written policy that says all overtime work is prohibited, again, if an employee violates that provision, the company better disclipline the employee, still pay the time though. Cannot reap the benefit of the employee's time and act like it was just free to the company. But denying the pay, and subjecting yourself to liquidated damages, which you may now owe anyway, is not a good business decision. The FLSA will require you to pay overtime on the next paycheck or payperiod, or liquidated damages are owed. Again, if an exempt employee, then there's no entitlement under the FLSA. If there's some employment agreement, that employee may have a contract that says he or she is paid $30 per hour for all hours, that employee may have a claim for breach of contract if they worked and did not get paid for all the hours. Any further questions, since you are a company it seems like, then you should 100% consult an employment lawyer or law firm as soon as possible. I suggest you review all your pay practices to determine if employee or more employees past and present are owed compensation for overtime hours worked.
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