Employers Violating Overtime Hours?

IHop A Cheater?

IHop Franchises have violated the overtime pay laws with at least 35 employees. They had to pay back $64,000 back wages.

Subway...Eat fresh, BUT no Overtime Pay.

Subway has violated overtime laws over 800 times since 2000. It is difficult to solve this problem because most Subways are privately owned. It is up to the owners to follow the laws.

Hotels and Motel employees might as well sleep on the job!

In 2011 34 hotel franchises violated the overtime laws. The laws violated were, not paying for overtime, and paying under minimum wage. Some housekeepers were paid by how many rooms they clean which made them make less then minimum wage.

That's Not All!!

Seven other big businesses and franchises have cheated their employees out of their earned overtime pay. You can check them out at the link below. http://money.cnn.com/gallery/news/economy/2014/03/13/overtime-violations/3.html

What is Overtime?

Overtime is money paid to employees that work longer then their scheduled times. For example; if you're scheduled to work 11-7, but you stay until 9 or 10 your job is required to pay you 2-3 hours of overtime.

How does it relate to economics?

This relates to economics class because it deals with people unfairly losing money. I think it also relates to economics class because we learned about incentives. In the long run this is a bad incentive for both the employer and the employee. The employer thinks its good because he is saving money, but after someone figures out what is going on, they will be forced to give out a bunch of money all at one time. Its a bad incentive for the employee because even though they are putting in extra hours, they aren't getting their earned pay.