Overtime Pay |
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The Fair Labor Standards Act ("FLSA") divides employees into two categories: "exempt employees" and "non-exempt employees." Non-exempt employees are entitled to time-and-a-half compensation for overtime work, among other benefits. The workweek is generally a fixed, regularly recurring period of seven days. Usually any overtime pay worked in a particular workweek must be paid to the employee on the pay day covering the same pay period in which the overtime hours were worked.
For example, to compute overtime for a non-exempt employee who worked 50 hours during a workweek and was paid an hourly rate of $9, the calculations are as follows:
$9.00 (regular rate) x 40 (regular hours) = $360
+ $13.50 (1.5 x $9.00) x 10 (overtime hours) = $135
TOTAL gross wages owed for the week: $495
The Department of Labor's regulations that specify which kinds of jobs are exempt or non-exempt are complex and frequently amended. Employers often exploit the confusion surrounding who is and who is not exempt to avoid compensating employees for their overtime work. Employers, however, cannot classify employees as "exempt" simply to avoid paying overtime. Job duties, occupations, and wages or salaries determine whether an employee is exempt. Job duties are usually evaluated on a case by case basis, and job titles are not considered determinative.
The attorneys at Katz, Marshall & Banks monitor the changing rules, regulations and court decisions regarding the application of the FLSA to specific categories of jobs. We have counseled scores of clients about their proper classification and their entitlement to overtime wages.
Some employers attempt to classify employees as "exempt" in order to avoid paying for overtime. Employers may also try to avoid paying overtime by having employees work "off the clock" or by not paying for certain hours worked, such as hours worked from home. These tactics violate the FLSA and corresponding state overtime laws.
State overtime laws may provide more overtime protection than federal law. Employees are protected by whichever law offers the highest protection, and employers are required to abide by any heightened state laws while remaining compliant with the FLSA.
While FLSA is a complex statute, the remedies available to employees whose rights have been violated are extremely powerful. FLSA provides such employees with a private cause of action for unpaid overtime wages and for penalties against the employer (paid to the employee) for improperly classifying an employee as FLSA exempt. The lawyers of Katz, Marshall & Banks have helped many clients obtain the compensation and other economic benefits owed to them under FLSA.
If you are or have experienced issues with overtime pay you are thinking about reporting, or if you already have reported them and are facing retaliation, contact the experienced lawyers at Katz, Marshall & Banks for an evaluation of your case with no further obligation. You can also look at our useful links page for a list of organizations that also provide information on overtime pay and wage entitlement.
