Wage and hour law sets what must be paid, for which hours, and to whom. It is federal, with state and local rules that are frequently stricter and take precedence where they are.
Overtime turns on classification, not on job title
Employees are either entitled to overtime or exempt from it, and the test is the duties actually performed together with how the person is paid — not what the role is called.
Paying a salary does not by itself make someone exempt. A supervisor who mostly performs the same work as the crew is commonly still entitled to overtime, and this is one of the most frequent findings against small trade businesses.
What counts as hours worked
Broader than time on a customer's site, and this is where trade businesses most often fall short:
Travel between jobs during the day is generally working time. The ordinary commute at the start and end of the day generally is not.
Loading, stocking and preparation before leaving, and unloading afterwards.
Required training and meetings.
Time on call, depending on how restricted the person is while waiting.
Unpaid travel between jobs is the single most common wage claim in the trades, and it is usually an oversight rather than a decision.
Records
Time records for hourly staff are a legal requirement with a retention period, not an administrative preference — see record retention.
Where records are absent and a claim is made, the employee's account is generally what stands.
Deductions
What may be taken from a paycheck is restricted. Deductions for tools, uniforms, damage or shortages are limited or prohibited depending on the jurisdiction, and taking one that is not permitted creates liability beyond the amount deducted.
Contractors
None of this applies to a genuine contractor, which is precisely why misclassification is examined closely. The tests are in employee or contractor.
Where to get the answer
The rules differ by state and change. This is a question for an employment attorney or a payroll provider familiar with the jurisdiction, and the cost of asking is far below the cost of a claim.
