Is it against the law to pay overtime after 45 hours and to pay the overtime in cash?

My landscape boss pays me overtime after 45 hours and he doesn't tax it but pays it as cash. Can he get in trouble?

Is it against the law to pay overtime after 45 hours and to pay the overtime in cash?
Paying in cash is not the problem. Not paying the taxes on that money will cause both you and him a problem.
Reply:Yes, he can certainly get into trouble.





He's not paying taxes on it - you're not paying taxes on it. The government doesn't take too kindly to that sort of thing.
Reply:Yes he can - the company is not paying taxes on it and neither are you. Should the government find out you are not reporting this income you could get in trouble.
Reply:He can get in trouble twice. First for not paying overtime after 40 hours in the week and second for not running it through payroll and withholding taxes on it. And you can get your butt in a sling if you don't claim the cash income and pay your taxes on it.
Reply:Yes, he can get in trouble - and so can you if you don't report it on your tax return and pay taxes on it.





And by federal law, he must pay overtime on hours over 40 a week, not 45.
Reply:This is called "paying under the table." and Yes, it is illegal.


However, in all fairness, he could be in a tight spot, and this is cheaper for him. (After 45 hours, I believe the law is time and a half.)


Also, if you are hurt on-site, and you are "off the clock" and being paid under the table, workmans comp will not recognize this... and things will not be paid for.