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Patrick, Esq.
Patrick, Esq., Lawyer
Category: Employment Law
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Experience:  Significant experience in all areas of employment law.
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We have two separate companies owned by two separate corporations.

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We have two separate companies owned by two separate corporations. They both provide residential services for mentally disabled individuals. If an employee that works full time for one company wants to work part time for the other company, does her total hours have to be combined to determine if overtime pay is due. The two companies are separate and she receives 2 separate W-2's
Good evening and thank you for entrusting me to answer your question. I will do everything I can to assist you.

Pursuant to federal law, which controls in Alabama on this particular issue, employees are entitled to overtime pay if they work more than 40 hours a week for "joint employers," defined generally as two organizations involved in a common business purpose that are subject to common ownership or control.

Factors which courts will examine to determine the existence of a joint employment relationship include the following:

- Whether there is an arrangement between the employers to share the employee's services, such as by interchanging employees;

- Whether one employer is acting directly or indirectly in the interest of the other employer in relation to the employee;

- Whether the employers share control of the employee;

- Whether there is common ownership of the employers; and

- Whether there is common management of the employers.

No single factor is determinative and courts will generally look at the “economic realities” of the working relationship between the companies rather than follow technical legal rules to determine whether a joint employment relationship actually exists.

To read more about the application of these principles, I would suggest taking a look at the following 7th Circuit Federal Appeals Court opinion:

Please do not hesitate to let me know if you have any questions or concerns regarding the above and I will be more than happy to assist you further.

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