Many employers are under the mistaken belief that simply because an employee is salaried, they are not entitled to overtime pay. The federal Fair Labor Standards Act (FLSA), as well as any applicable laws in your jurisdiction, regulate issues such as minimum wage, overtime, record keeping, and child labor. When certain employees work in excess of 40 hours in a given work week, federal and state laws require that the employee be paid at a rate of at least one and one-half their regular rate of pay for the additional hours worked. Some employees are exempt from this requirement and determining whether you are entitled to overtime pay depends on how your job is classified according to regulations set by the United States Department of Labor. If you believe that you are entitled to overtime pay that you are not receiving, you should contact an experienced employment law attorney as soon as possible to retain legal representation.
The general rule is that unless an employee falls under one of several available exemptions, they are entitled to overtime pay for any hours worked over 40 in a given work week. The work week does not have coincide with the calendar week, and can be any 7 consecutive 24-hour periods. In order for employee to be classified as exempt, their positions must meet certain requirements set by the Department of Labor. As examples, here are the requirements for overtime exemption for Administrative and Executive employees:
Administrative Exemption
-The employee must be compensated at a rate of at least $455 per week
-The employee must do primarily non-manual work that has to do with business operations
-The employee must exercise independent judgment and discretion in decisions that are significant to the operations of the business
Executive Exemption
-The employee must be salaried, and compensated at least $455 per week
-The employees main duties must be managing the business or managing a particular department or subdivision
-The employee must supervise at least two other full time employees, or their equivalent
-The employee must have the ability to make decisions or recommendations regarding the employment status of other employees
-There are several other overtime exemptions available under the law, including exemptions for professional employees, creative professionals, certain computer based jobs, and some sales positions. The regulations do make clear that “blue collar” workers, who perform repetitive manual labor, are never exempt from overtime requirements.
Contact HKM for a consultation
If you believe that you are entitled to overtime pay that you are not receiving, you should contact one of the employment law attorneys of HKM today. We can help make sure that you are receiving the compensation to which you are entitled, and can also help with any other employment law issues that you may be experiencing.
