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Overtime pay for BlackBerry use?

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Erik_max50

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Posted about 1 year ago

 

In last week's TrendWatcher titled Beware of the Thorns in the BlackBerry Patch, the author talks about employees who have sued their companies for (or demanded) overtime pay for after-hours work... that was done on their BlackBerries. This raises an interesting question: if a non-exempt employee has a BlackBerry and thus is carrying their work around with them (and, as they are addicted, likely to respond to emails, etc. even when out on a date with a beautiful person), how liable is a company for that work? How does a company provide productivity tools like BlackBerries to employees without giving them the ability to just rack up overtime?

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Rate This | Posted about 1 year ago

 

I think that the answer to this one is to regulate what will and will not be paid for.  An employee should never be allowed to decide for himself that he is going to work overtime from his Bluetooth or computer at home and then just bill the company for it.  This should be regulated under strict overtime policies, and should only be paid if the company authorizes it in advance.  Work that can't wait and must be attended to at once would be something that the management would be aware of.  Everything else should fall under the topic of "it can wait until tomorrow" and be left until then.

Ahmed_maher_max50

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Rate This | Posted 11 months ago

 

Seabrown and Cocaboo, very interesting topic.


 


others, do you have any more views to add ......

2009_0923personal0002_max50

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Rate This | Posted 11 months ago

 


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with Sarah on this one. If there is a question raised you need to address it in the company policy immediately. Salaries should reflect, represent and compensate the time involved with "after hours" work by an exempt Ee if it is essential to the company's success. At no time should they be allowed to choose when OT takes place. I think it is assumed for the most part that these things are part of the job but all it takes is for someone to challenge the norm.


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Rate This | Posted 11 months ago

 

You have to be careful of the laws when it comes to paying employees.  Most states have a rule that if the employee worked, wether they had permission or not, they have to be paid. A company can not decide when they will pay an employee or not.  You only recourse is to pay them for the time, but reduce their hours so they only work 40 hours and then treat it as a voiliation of company policy. 

Erik_max50

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Rate This | Posted 10 months ago

 

Yes, as srtoady said, I think this quickly becomes a legal issue - you can set policies, but if an employee logs on after hours to do blackberry work anyway, isn't he or she still working?

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Rate This | Posted 10 months ago

 

A person who has not obtained permission to work overtime or at home has worked voluntarily and can not expect to be paid.  The laws covering overtime are very concise and clear on the matter: companies are not allowed to force someone to work overtime or to work from home for free, but neither are they required to pay someone who chose to do something on their own time.  Overtime requires a manager's authorisation.

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Rate This | Posted 10 months ago

 

a company must pay overtime even if the time was not authorized.  otherwise companies could set up a culture of not authorizing overtime but giving the employee a work load they can not complete during regular hours, but they expect the workers to work for free to get the job done.  If the employee suffers or is allowed to suffer to work then they must be paid.  check with your lawyer before you do not pay unauthorized overtime.  it will cost you dearly if you dont't.

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Rate This | Posted 10 months ago

 

We aren't talking about a workload that was expected to be done whether on company time or home time.  The question here is if an employee decided simply to do something that hadn't been asked of them, a decision of their own, and then tried to bill the company.  The answer to that is clearly no.  Otherwise, companies would be forced to pay people for whatever they wanted to do, whether the company had asked for the work or not, and that clearly wouldn't be very good for the company, putting employees in control of getting paid for work that didn't need to be done outside of work hours.  If the company had a work expectation, then it is the employee's responsibility to ensure that there is a clear understanding of whether or not they would be paid.  If they were not going to be paid, they have the legal right to refuse and to ask for the matter to be put into writing.  The company, on the other hand, has the legal right not to be forced to pay for work that they didn't ask to have done.  The company is, therefore, not at all required to pay for such work.  There are clear policies in place in every company ( or should be for legal reasons ) covering these very issues.  Only overtime work that was authorised in writing by a person in charge is to be paid.  If it isn't authorised according to company policy, the employee would not have a legal leg to stand on.  The company's lawyer would simply have to point out the policy and ask for the proper form authorising the work to be produced.  If it couldn't be produced, that would end the hearing, and that would be the case in any tribunal.

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Rate This | Posted 10 months ago

 

You mentioned tribunal so I am guessing you are not in the USA.    In the USA the employee must get paid for anytime they work for the company, authorized or not.  I ahve seen many companies get caught for unpaid wages for when the employee comes in to work early and does work or sits at their desk for lunch and answer emails or the phone and the dept of labor gets wind of it , then the company must pay, not only the amount owed for overtime but also they will pay an additional amount of up to 3 times that.  Each state is different, but the law here says pay them and treat it as a performance issues for not following  company policy.   Below is the defination as use by the US Dept of Labor.


 



Definition of "Employ"



By statutory definition the term "employ" includes "to suffer or permit to work." The workweek ordinarily includes all time during which an employee is necessarily required to be on the employer's premises, on duty or at a prescribed work place. "Workday", in general, means the period between the time on any particular day when such employee commences his/her "principal activity" and the time on that day at which he/she ceases such principal activity or activities. The workday may therefore be longer than the employee's scheduled shift, hours, tour of duty, or production line time.



Application of Principles



Employees "Suffered or Permitted" to work: Work not requested but suffered or permitted to be performed is work time that must be paid for by the employer. For example, an employee may voluntarily continue to work at the end of the shift to finish an assigned task or to correct errors. The reason is immaterial. The hours are work time and are compensable.


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Rate This | Posted 10 months ago

 

Actually, I did payroll in the USA, and stopped working through lunches when I found out that I was to dock employees for an hour's lunch whether they worked through it or not due to Federal mandates regarding hours.  Employees who work through lunch do not get paid for that time due to Federal laws requiring the employers to show that the time was given for lunches.  For that reason, employees need to be responsible about how much work they do on their own time according to US Federal Employment mandates.  The question is still the same, and so is the answer.  For me, when I found out that I had to take an hour for each 8-hour day off of each employee's time whether they had clocked out or not, I stopped working through my lunches, as I don't work for free.  If a project was mandated to be completed, and I had to work past the time for shutting the office to complete it, then it was authorised.  If, however, I chose, against company policy, to continue working of my own volition, then I had no right to claim overtime, and these matters are mandated by US Federal law to be clearly spelled out in your policies.  In fact, there are some companies over there that have so-called "mandatory overtime".  This is only legal if the employee agrees to it, and paperwork is required to be signed by the employee saying that he agrees to work that overtime.  If he does not agree, then the fact that he refuses to work the added hours is not supposed to cost him his job.  Of course, you know that another reason will be found, but that's not the question.  Overtime is very clearly mandated by Federal law, and employment is very clearly defined by Federal law, all of which is legally supposed to be addressed by every company in their employee policies books.  It is important to note that I have worked in this field on both sides of the pond and am probably more highly educated on IRS rules and policies for both employers and employees, as well as the IRS rules and policies for business owners, depreciating assets and mileage logs than I am about the European laws.  Which I'm pretty familiar with.  Self-employment was also part of my experience there.  Any further questions could, in theory, be forwarded to our Employment Law Gurus group.

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Rate This | Posted 10 months ago

 

according to the US dept of Labor you must pay employees for any hour that they work for the benefit of the company whether authorized or not.  the Us dept of Labor does not restrict employers from requiring mandatory overtime and the laws do not protect any employee that refuses to work mandatory overtime.  Depending on which state you work in, the penality can be up to three times the amount you should have paid the employee.  Walmart just got hit (again) for not paying workers.  If you were automatically docking employees for an hour lunch you were in voliation of the law.  If the dept of labor did an audit on your company you would have been guilty of a willful voliation and would be paying more fines.


 


MINNEAPOLIS (AP) ―



 

Dscn0204_1__max50

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Rate This | Posted 10 months ago

 

 


Srtody is correct. Any time work by a nonexempt employee must be paid regardless if it was authorized or not. The employee can be disciplined for working unauthorized but they still must be paid. Also overtime can be mandatory, many companies schedule employees to work more then 40 hours per week. The FLSA requires that overtime be paid for any hours worked in excess of 40 at time and a half (some states have additional rules). There is not a even a limit on the amount of hours an adult can work in a week.

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Rate This | Posted 10 months ago

 

Overtime is strictly regulated and cannot be enforced.  No employee can legally be required to work more than forty hours in a week.  Laws were in place that protected employees from the so-called mandatory overtime, which is what caused the IRS itself to get into trouble over its seasonal workers, as the IRS had considered itself above the law due to the fact that it was a government agency, and I learned this whilst working for the IRS itself.  Though there is no limit over there currently (the new limit here from the European Parliament is 48 hours) as to how much an employee can work voluntarily, it is strictly illegal for an employee to be told that they must work overtime or lose their jobs unless they have signed a form consenting to that, and though I don't at the current moment remember the code of the form, I do remember the form itself very well.  Now, if what is being stated here is that the laws have changed in the last few years to make these things legal, then I would be very disappointed.  I had been pleased at the level of protection that American workers had when I worked there.  It sounds to me as if things aren't that great anymore, and I would hope that I have misunderstood that situation.  We still have the strict laws in place here that protect workers from such things, and these laws are constantly improving, as my recent article brought out.  Surely it's getting better there, as well?   Surely you're not telling me that in the last six years things have changed to such a degree that employees there are subject to such things as this?  I do hope not.  If things have changed this much and in this direction since when I worked there, then I have to say I'm shocked.  Those laws were hard won by many union people and the sacrifices they made to get those laws would be sadly disrespected by the loss of the protection they offered.

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Rate This | Posted 10 months ago

 

I have worked in payroll for almost 20 years and have never heard of any law that protects employee from mandatory overtime.  Many states have laws that state the employee must be given a day of rest after so many work days, but each state is different. Some states and I believe the Fedearal Gov't are trying to limit the amount of hours healthcare workers can work, but other then that, work them till they drop.

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Rate This | Posted 10 months ago

 

Working for the IRS gave me the opportunity to learn alot of things.  There is a law that says that there is absolutely no such thing as mandatory overtime, or at least there was six years ago.  The question here, however, was whether or not an employee who, against company policy and without authorisation, worked on his own time on his blueberry was entitled to overtime pay, and the policies for that are supposed to be clearly marked out in the company policies handbooks, especially regarding the use of personal time and equipment to carry out business.

Wallpaper_lotus_flowers_max50

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Rate This | Posted 10 months ago

 

This has been a very interesting discussion!  Company handbooks and policies should clearly spell out the overtime rules.  If they don't, more than likely they can end up in court and paying out excessive amounts of overtime.  I recently went through this experience regarding overtime and the company ending up shelling out over  $30,000 in overtime pay to this employee.  Clearly state your policy!  It should also include the use of personal versus company equipment as well. 

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Rate This | Posted 10 months ago

 

it does not matter what your company policy states.  Federal law and state laws will override any policy you may have in place.  stating that you will not pay for unautorized overtime will probably get you in more trouble for willful violiation.


The bottom line is if your employee works for you in any way, shape , or form, pay them.

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Rate This | Posted 10 months ago

 

Experience is showing that it does matter what your company policy states, and the Federal laws are clear, which is why company policies need to be in place.  Company policies that are properly in place and clearly worded, along with the Federal and State laws, protect both the employer and the employee.  Company policies that are in violation of Federal law would be those which try to create an environment where employees are forced to work beyond what is legally provided for, and I have worked in areas there in the States where we have had to take on companies who thought they could get around the laws and force employees to do such things as "mandatory overtime".  Not even the IRS is allowed to get away with that one, because Federal law, to which they also are subject, is very clear on the matter.  In any case, as has been stated before, this is a question of whether or not an employee can force a company to pay whether the overtime was authorised or not, and if company policy and job requirements are clear, the answer is no.  The employee could only do that, as has been brought out, if the company left themselves unprotected.  Clear policies would take care of that.

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Rate This | Posted 10 months ago

 

Walmart just settled for 640 million dollars to settle 63 class action law suits for not paying their employees overtime pay. And they still have more class action suits waiting.  If your company policy states that you will not pay for unauthorized overtime, you will get yourself in more trouble.  The DOL and the courts will view this as a willful violiation of the law.  You blatently setup a policy that is against the law.  Expect to see a few dollars added to your fine for that one.  That is why it is important to make sure you company policies follow the law.  What your policy should state is that employees are must have authorization to work overtime.  Failure to obtain authorization for overtime can lead to corrective action up to and including termination. Now if an employee works overtime that is not authorized you can do something about it, but you still must pay them for the time they worked.  Please check out the US department of labor website.  They are quite clear on what the employee must get pay and on mandatory overtime. Every year a local law firm puts on a seminar on the top ten wage voilitions in NH and every year not paying employees for overtime is the number one issue. why because most companies think they do not have to pay people because their company policy clearly states so.    Think about it, 640 million dollars, that is a lot of money.

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Rate This | Posted 10 months ago

 

Wal-Mart's suit did not involve employees who insisted on coming to work even when they weren't on the schedule.  That is a completely different scenario than what is being discussed here.  Wal-Mart's employees who were not paid overtime were on the clock because they were ordered to be, not because they chose to be.  In addition, they were not working from home on their blueberries.  That is a completely different thing.  The answer that I've given and that others have given is legally correct.

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Rate This | Posted 10 months ago

 

so you are saying that if my company policy states that the company will not pay for unauthorized overtime that you do not have to pay the employees and the company can not require you to work overtime?


again I will post from the US Department of Labor website:


"Employees "Suffered or Permitted" to work: Work not requested but suffered or permitted to be performed is work time that must be paid for by the employer. For example, an employee may voluntarily continue to work at the end of the shift to finish an assigned task or to correct errors. The reason is immaterial. The hours are work time and are compensable."


If that is not clear enough to state the you must pay the employee regardless of the reason then I do not know how to convince you.


also fro the website on mandatory overtime


"Also, FLSA does not limit the number of hours in a day or days in a week an employee may be required or scheduled to work, including overtime hours, if the employee is at least 16 years old."


Now I will turn to the original question about blackberry use.  Why would your hourly employees have to have a blackberry. I can understand if they are travelling for the company and need to keep in touch but why else.  Because it is too hard to track when employee use their blackberry and when to pay, I would never allow an hourly employee a blackberry.  the fact that they are hourly gives the feeling that they are not in a position that would require them to be in constant contact for the company.


If you have ever been involved in a dept of labor audit of hours worked or a lawsuit, the lawyers or dept of labor will get the hours worked from the employee and it is your job, as a company, to prove that the employee did not work those hours.  Not an easy task and when you add blackberry useage, makes it more difficult. usually it is only one employee that has made the complaint, but if your defense is your company policy states that you do not pay for authorized overtime, the dept of labor or the lawyer will turn it into a class action and go after you for every last employee.


I agree with Ahmedmaher: where are the rest the HR world and their input. Don't be shy, it is a issus that every company faces and there should be more of you out there with input either way


 

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Rate This | Posted 10 months ago

 

You can not prevent anyone from having a blackberry.  Work suffered or permitted is a good deal different from work forced upon the company unasked.  I am, indeed, saying that a company can not legally require you to work overtime.  As I have stated before, if you have to work over in order to complete an assigned task, then the work is authorised.  If, however, you have chosen to do something that is not required simply because you thought it was a great idea, you can not force the company to pay you for doing that.  Company policies would clarify what would be accepted and what would not, and before any employee were to do any work on their own time and of their own volition, they would need to make certain of whether or not it would actually be accepted.  "Mandatory overtime" is only by consent and with the proper forms, as the rest of the law would show.  There is no such thing as an employer having the right to force an employee to work endlessly without the consent of the employee.  I myself have been an hourly employee who not only had a company email address, but used my mobile phone to contact the owners outside of my office hours, and this was with the approval of the owners.  Just because one is an hourly employee does not mean that one would not be in a position to be of use to the company in different ways.  If the person involved in the question of this thread was not supposed to have a blackberry, then there would've been no question to begin with.  I have, in fact, been involved in audits, so know of what I speak.  The question has been answered.  The misunderstanding of what is meant by "suffered or permitted" is understandable, but the fact is that work which is suffered or permitted is the kind of work that Wal-Mart ordered and then tried not to pay for.  Work that someone does just because they decided they wanted to, though it was neither suffered nor permitted by the employer is what we've been talking about throughout this thread, as I have tried repeatedly to make clear.  The answer to that question, which I have given and others have backed up exhaustively, is correct.

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Rate This | Posted 10 months ago

 

I would suggest before anybody refuses to pay an employee for unauthorized overtime, they call their local dept of labor or a lawyer first

Dscn0204_1__max50

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Rate This | Posted 10 months ago

 

 


I have to disagree with you seabrowntree. 


  • Mandatory overtime happens all of the time. At my company, hourly employees are regularly scheduled to work 48 hours a week (4 twelve hour shifts) and then at times are called in on their days off. Overtime can be mandatory. 

  • Any time worked for a company, authorized or not, the company must pay for the time worked. Through company policy, discipline can be administered for unauthorized work but the time must still be paid. US law will not allow you, by company policy, not to pay an hourly employee for work they performed.

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Rate This | Posted 10 months ago

 

I am familiar with the four 12-hour shifts, which are agreed upon by the employee before taking the job, which is taken as described.  However, that is different from an employer taking an employee who was hired to work forty hours a week and then trying to force him to work 48.  So, there is no mandatory overtime.  The 12-hour shiftwork is consented to by the employee beforehand, it is not forced on the employee later on, making it mandatory.  The employee has the choice of not accepting the job to begin with when it is described to him as involving four 12-hour shifts, which means by consent.  Even from a business perspective, it would make more sense for an employer to hire four eight-hour shifts than to pay over-time or double-time for one shift to work three or four stretches, which is why they usually do.  So, there is no endless supply of overtime to worry about.  In fact, Safeway had a strike not too many years ago because the company wasn't providing enough overtime hours, not because they were being forced to work overtime.


I'm also quite familiar with the law which says that employees must be paid for work performed.  However, if an employee goes home and decides on his own that he can use his own computer to do something that he thinks would be a great thing but which the company did not ask him to do, he can not expect the company to pay him for that.  If this were the case, then people would be able to stay at home, do whatever they liked, call it work and then bill the company, which would be required to pay them for it, and everyone would be doing it.  There is a matter of legal interpretation to be considered that would explain it very well.  The fact is that you must have company policies in place that define what is work, what will be accepted as work and what employees will be allowed to do, on or off duty.  I can not say that I ever saw a corporation that I worked for not have such policies in place, and they were rigorously enforced.  Policy books which clearly spell these things out legally will hold up in court, and the wayward employee will not get the money.  Now, these cases where employee policies were not clearly spelled out are more often than not settled out of court without admission of wrongdoing simply because it is cheaper to settle than to pay your lawyer to wrangle endlessly with another lawyer over the legal symantics.  This doesn't mean that the law insisted that the employee be paid, it means that the fight was more costly than it was worth, so it was settled.  The time to consult an employment lawyer is when you're writing your policies so that the legal language will hold up in court.

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Rate This | Posted 10 months ago

 

 


Both Dmiller and srtoady are correct in that nonexempt employees (in the U.S.) must be paid for any overtime worked. It does not matter if the company policy states all overtime must be approved by your supervisor/manager.  The only way to keep an employee from working overtime that is unauthorized is to give them a written warning not to do this again as it is against company policy (as long as there is a written policy stating this) and that any further actions against company policy will result in termination of your employment.  If the employee is taking the work home make sure you define in the written warning this includes any work on company premises or outside of company premises. Once the employee has been warned if they continue to work overtime that has not been approved, the company has the right to terminate their employment.  The overtime would still have to be paid if it happens again (after they received the written warning) if the decision is made to terminate their employment. Also make sure the written warning has been signed by the employee. 


One of the new trends in lawsuits involve salaried employees suing for overtime wages.  Surprisingly enough many are winning their cases.


 

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Rate This | Posted 10 months ago

 

Sadly, many people do win cases simply because it's easier to settle out of court than to fight, even if you're in the right.  But the company does have the legal right to define work.  If an employee does something from home, of their own volition, it is not the company's obligation to accept it as work.  If they accept it and have benefited from it, then of course they have to pay.  If they do not accept it and do not benefit from it, which both parties would have to prove, then they are not obligated to pay.  Gross violations of policy can carry an immediate termination without warning, as we all know, and it's important to note that just because the employee refuses to sign the written warning doesn't mean it isn't effective.  The manager has an option which allows her/him to still include it in the employee's file, along with the note "employee refused to sign", which will only go against the employee in the end, as that can be brought out as well.  Even though employees have hard-won rights, it is important to note that employers have rights, as well.  Overtime is strictly regulated so that neither employers nor employees can abuse it, and really, it isn't worth it to the employee to work a little overtime and then lose his job, so if these things are legally spelled out in the policies, there will be no problem, nor would there be any extensive time spent in court.  Even if the company chose to settle rather than pay for a protracted court battle, the employee could be issued the settlement with his final pay packet.  Since the next employer would have the right to have it disclosed if there had been such actions taken by previous employers, the employee might then find it rather difficult to find work again.  When things are legally spelled out and the employees are all aware that these things will be strictly enforced, problems become few and far between. 

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Rate This | Posted 10 months ago

 

a salaried employee can easily win an overtime suit.  Too many companies think that by paying an employees a salary they are exempt from paying overtime.  little do they know that there is a BIG diference between salaried and exempt , one of the most common mistakes made.

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Rate This | Posted 10 months ago

 

You are exactly right.  They do make a very big mistake in the way they define the hours for salary and exempt employees.  Even though there is more expectation of exempt employees in terms of working hours, this can easily be carried to the extreme, and there comes a time when even the most devoted of employees must set limits.  I agree that there needs to be a much clearer understanding of what exempt actually means in terms of hours.  If an exempt employee works too many hours, they are eventually in danger of actually working for less than minimum wage per hour, which isn't fair, and isn't even the letter of the law regarding exempt employees, never mind the spirit.  I've seen that one taken too far many times, and those employees are right to take these matters on in court. 

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