Is There a Way to Stop Overtime Premiums?

California employers know that overtime premiums are costly, and employers often ask us if there is a way to legally avoid paying overtime to non-exempt employees. There is potentially—and it involves the adoption of Alternative Workweek Schedule (“AWS”).

Simply put, an AWS allows non-exempt employees to work more than 8 hours in a day without being paid overtime. The benefits of an AWS are obvious: Employers do not have to pay overtime while employees potentially receive additional days off (for instance, if an employer had an AWS schedule where employees work four ten-hour days, employees could potentially get every Friday off).

But an employer cannot implement an AWS unilaterally or wily-nilly. To implement an AWS, an employer must jump through procedural hoops consisting of reporting, meeting, and voting obligations. Happily, however, the implementation of an AWS is doable by competent counsel.

And more good news for summer: You may be able to implement AWS on a summer (seasonal) basis for those employees who would like extra days off in the summer to be with their loved ones.

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This material is provided for informational purposes only. It is not intended to constitute legal advice, nor does it create a client-lawyer relationship between MNK Law and any recipient. Recipients should consult with counsel before taking any actions based on the information contained within this material.