Tue, 04/26/2016
Summary: Most salaried employees are required to be paid overtime. But many people think that if they receive a salary, then they are ineligible for overtime pay. WRONG! It’s possible that you may not be getting paid for all the work that you are doing.
Why: Companies can often get away with this by brushing over the rules. The guidelines for who should be paid overtime can be confusing if an employee does not know what to look for. Companies may tell employees that if they are salaried, then they do not receive overtime. However, legally companies can’t just decide for themselves whether to pay overtime or not. Many salaried employees are entitled to overtime pay, but instead work overtime hours “for free” because they don’t understand their rights.
In Technical Terms: When it comes to being paid overtime an employee is one of two things — exempt or nonexempt. So what determines which category you fall into? To be “exempt” you must meet both for these criteria: 1. You must be paid a salary AND 2. You must perform duties that are considered “exempt”. Exempt duties may be those that require you to use a great deal of discretion and individual judgment. The most common exemptions are for employees who perform “administrative,” “executive,” and “professional” duties:
- Administrative — performs office or non-manual work that relates to management or business operations, requiring individual judgment or discretion with regards to important issues. Exempt administrative employees may make management policies or make commitments to vendors. Examples: a buyer for department store, a person who negotiates leases for his company or a supervisory employee benefits specialist.
- Executive — primarily manages a division or department and supervises at least two full-time employees on a regular basis. They must have the authority to hire and fire employees, or at least provide input that is routinely followed into decisions about hiring, firing, or promotion. Just because your title has “manager” doesn’t mean you meet this test. Many mid- or low-level managers aren’t exempt executives because they can’t make decisions on their own.
- Professional — main duty is to perform work that requires advanced knowledge in a field of science or learning, which is typically gained through advanced course studies. Examples: An engineer, accountant, lawyer, or a doctor.
If you do not fall under one of these categories, you are likely entitled to overtime pay, even if you are salaried.
So, what are my rights?: Under a federal law, the Fair Labor Standards Act (FLSA), if your employer has misclassified you and hasn’t been paying you overtime, you could receive back pay, extra “liquidated damages,” and attorney’s fees going back two or three years. Many states have additional penalties for employers who fail to pay their employees properly. For example, in New York you can receive pay going back six years instead of three.
If you think you’re entitled to overtime but aren’t receiving it, please visit our website at www.wmlaborlaw.com or e-mail us at info@wmlaborlaw.com
