$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 Anaplan
White Papers
Provided by Anaplan
Further Reading
Influential people who have positive attitudes can help others around them think more positively. The opposite is also true. Negative pe...
Some people in charge of a finance team have leadership quirks. They’re the kind of things that are obvious to the leader, but an...
IRS is extending tax relief to businesses in Broward County, FL affected by the tornadoes, severe storms and flooding from April 12-14. Fed...
A federal court entered a consent order against three Cowbell sports bars in Biddeford,Scarborough and Westbrook, ME, resolving a Departmen...
It’s not a coincidence that National Payroll Week is always the same week as Labor Day. This year, it’s September 5-9. In an...
Employees who are just getting started on their annual tax filing chores may come to you or other finance staffers for info. A lot of cash-...
