What to do about paid hours versus billing hours?

My employer is now paying us hours worked but is billing 12 or 14 hour minimums to the company we are working for. That’s on top of the job bonuses he bills for that we no longer get. So he is collecting on man hours worked and not paying our bonuses but collecting them and not paying us for what he is billing. Is that legal??

Asked on June 28, 2016 under Employment Labor Law, Utah


SJZ, Member, New York Bar / FreeAdvice Contributing Attorney

Answered 4 years ago | Contributor

It is perfectly legal from the employee's perspective: there is no law or legal requirement whatsoever that an employee's pay have anything to do with the amount billed the clients. The two are simply irrelevant legally to each other. Now, if the employer is biling clients for work not actually done, or otherwise violates the service/work agreement with the client or defrauds the client, then the client may have grounds for legal action--but that has no bearing on employee pay.

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