Overtime & Timecards with two or more locations. Is there a way to separate timecards by location?

[CTtaqueria]

Hello,

So we have multiple locations (all of them are their own individual business entity) on one master square account. We like to move employees around between locations using the same clockin number so that they don't clock in overtime hours in Location 1, thus sending them to work at location 2 to clock regular hours. However, in the labor reports, it will still count those extra hours as overtime hours, despite it being another business. I'm sure there are Companies that pay hourly based off all their locations, but for our purpose, it needs to be separate. The only work around that we've done is to make two separate clock in numbers, but that defeats the purpose of having one master account. Maybe square can make a setting where it asks if you want to combine or separate total working hours between locations. Since we are using a separate payroll company. 

[Donnie-M · Accepted solution]

@CTtaqueria I would be very very careful in this situation.  The Fair Labor Standards and the Department of Labor could rule you are a joint employer and thus overtime would be due for non-exempt employees.  This would also be very concerning if you are using square and coordinating schedules.  This rule is intended to cover independent businesses with common ownership.  I would definitely get with an employment attorney before you do much more with this.  It only takes 1 disgruntled employee to have you in hot water with the department of labor and they are very unforgiving with back wages.  You don't actually even have to have the same ownership if your businesses meet the test.

That being said, if you don't fall under that category, I would just simply set up the employee for each location with a different pin and job code.  They clock out on one..clock in on the other one.  The employment management side of things shouldn't cost any more since it is per location.

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The DOL final rule specifically addresses the circumstances of an employee working for two different restaurants with the same owner in example 2, which reads as follows:

(2)(i) Example. An individual works 30 hours per week as a cook at one restaurant establishment, and 15 hours per week as a cook at a different restaurant establishment owned by the same person. Each week, the restaurants coordinate and set the cook's schedule of hours at each location, and the cook works interchangeably at both restaurants. The restaurants decided together to pay the cook the same hourly rate. Are they joint employers of the cook?

(ii) Application. Under these facts, the restaurant establishments are joint employers of the cook because they share common ownership, coordinate the cook's schedule of hours at the restaurants, and jointly decide the cook's terms and conditions of employment, such as the pay rate. Because the restaurants are sufficiently associated with respect to the cook's employment, they must aggregate the cook's hours worked across the two restaurants for purposes of complying with the Act."