So I recently got a call from hr at my job that starts tomorrow. Apparently the company has a really conservative legal, so they have decided to follow the letter of the law in the US and pay analysts time and a half for any hours we work past 5. Has anyone in banking heard of this happening?
I guess everyone knows that I-Banks break the law by not paying overtime, since analysts cannot be classified as managers, but does anyone think this change might actually take place? Are there any i-banks that do this?
To be honest I let out a freaking squeal after hearing from hr about it. This is a ridiculous amount of money if I pull an all nighter or something. She told me extra hours will be about 50 per hours. All I have to say is swish.
what exactly are you worried about?
a) they explicitly told you they will pay you overtime b) you are expected to work well past 5
so not sure what the issue is...sounds like a good deal to me.
No dude that is not how the law works. You don't have to be a manager, it is sufficient that you are salary based and meet some other criteria (like working for a bank or other professional firm, etc.).
Otherwise the overtime pay is pretty sweet. if you work on average 80 hours per week, you will be earning $170,000 per year, plus any eventual bonus if they still decide to pay those out.
Not sure why you are worried, but also not sure why they are doing it. If you're getting paid by an annual salary rather than by the hour, they don't have to pay overtime - you pretty clearly fit within the professional exemption.
http://www.dol.gov/esa/whd/regs/compliance/fairpay/fs17d_professional.p…
I wouldn't get too excited about overtime pay. The more overtime they pay you, the smaller your bonus will be if you manage to get one at all.
After paying out what will no doubt be an egregious amount of overtime dollars, you can also expect a swift round of layoffs when the quarterly numbers reveal what a disaster the overtime policy is.
So in order not to be laid off, you'll have to work harder than you ever have in order to outshine your peers, but there won't be any money left for bonuses to reward your effort.
Sweet deal.
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i guess what edmundo said worries me, but since I'm just starting, and my company does an 18 month rotation, I still feel pretty good about it
I'm making it up as I go along.
-have received this year
this is wrong and is not the law. only summer analysts get paid overtime because they are temporary workers and do not receive a bonus or any other compensation for any extra hours worked. regular analysts get bonuses and other benefits, so this doesn't apply to them. i know of some firms who do actually pay overtime to full time analysts, but at those places there bonuses are really small and overtime is rarely worked, as that option is only given to back office.
This sounds right to me
I'm going to disagree with that completely. First of all, OT Law varies on a state by state basis, so we have no idea whether the OP is working at a shop in Cali, where OT laws work significantly in favor of the employee or in New Jersey, where the only people that benefit from OT are state workers. Actually, that's a blatant lie, State Workers are are the only people that benefit in general in NJ... them and corrupt politicians.
A firm is required to pay overtime to any full-time employee that is not deemed "exempt", that is, an employee who does not have some sort of advanced skill set that is used as part of their employment. The skill set of an analyst, for example, would make them exempt because of the technical knowledge (modeling, reading balance sheets, etc.), that are required of them. Most titled positions in general are considered exempt positions as well due to some advanced degree of knowledge required for your position. There are a slew of requirements for employees considered exempt versus non-exempt, but that explains it in a nutshell.
I can't comment about how temp workers are paid, as I don't know what the rules and regulations are, but I would assume that summer interns, despite their analyst roles, are considered to be non-exempt because they don't have the prerequisite skills required for a full analyst gig as of yet, which allows them to get the OT.
I heard from someone at Barclays that they are getting salary plus overtime. He wasn't in IB though.
Credit Suisse used to pay overtime to summer interns.
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