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Compensating Overtime Employees

Here's why one entrepreneur hired on an HR person to take care of overtime pay.

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This story appears in the February 2008 issue of Entrepreneur. Subscribe »

Ben Wolin sometimes pays hourly employees time and a half. "We have some employees who are subject to overtime pay," says Wolin, 33, co-founder of 6-year-old Waterfront Media, a New York City firm that operates 15 health and wellness websites.

But overtime pay is a growing area of litigation. According to the Department of Labor, back wages for overtime violations represented about 89 percent of all back wages collected in 2006. And employers who lose in court could end up paying both damages and plaintiffs' legal fees. As a result, most overtime cases settle out of court.

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