$1.5 million OT lesson: Termite inspections aren't sales activities
A major pest control company recently learned a tough lesson about the difference between sales activities and services, as well as how much misclassifying employees as overtime exempt can cost.
Here’s what happened: Terminix allegedly required trainees, who perform termite inspections, to work long hours – especially during its “swarm season” in late spring/early summer – without the overtime, rest breaks and meal periods that state law requires. The company claimed that its termite inspections are sales activities exempt from overtime. But a judge ruled the inspections were actually services and trainees were owed overtime payments.
In the end, Terminix settled the lawsuit for $1.5 million and updated its policy to classify trainees as overtime-eligible.
- Share on
Free Training & Resources
White Papers
Provided by Personify Health
Further Reading
If you believe workplace polls, more than half of working adults do just about the bare minimum that’s required to keep their jobs. ...
The demand for finance chiefs is growing. Yet more companies are replacing their CFOs. Even so, CFOs are a lot less worried about AI taking...
If someone qualifies as exempt from the overtime requirements of the Fair Labor Standards Act (FLSA), is an exempt classification mandatory...
IRS just released guidance on a new type of emergency savings account, created under the Secure 2.0 Act of 2022. Employers can start off...
The higher overtime salary threshold that kicks in on July 1 will affect a million-plus salaried exempt employees. And it’s good news...
When a natural disaster hits, you’ll be focused on ensuring your people and property are safe. Details like tax deadlines may not be ...
