I've got a friend (in the Nashville, TN area) who is working for someone that owned a franchise and now opened up a second one. My friend was working 45 hours a week and got overtime, but now the owner has put them on both payrolls and splits their hours between the two, and therefore, doesn't have to pay overtime.
First, is there anything illegal about this? Second, does this maybe cost the owner more than paying 5 hours of overtime? I know there are hidden cost in having employees on the payroll. Does the owner maybe pay more in workers comp or anything? Just wondering if there's any incentive for the owner to only employ them at one company and just pay them the overtime, rather than maintaining them on two separate payrolls, even if it isn't necessarily illegal.