FLSA Overtime Pay

Information on Overtime Pay: Who is supposed to get it?

The Fair Labor Standards Act has its provisions summarized in just a few words by the U.S. Department of Labor: “An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.” Although the concept may be simple, implementing overtime pay is complex. There are as many explanations and exemptions to the policy as there are different types of work. The FLSA is the foundation for how overtime pay laws work, but each state has different wrinkles. The differences of each state’s law are usually where violations occur.

• Non-exempt workers – more commonly called employees covered by the FLSA must be given at least time and one half their regular pay rate for every hour worked more than 40 in a particular workweek.
• Averaging of hours over two or more weeks in order to avoid overtime payment is not allowed.
• The Fair Labor Standards Act does not put a limit on the mandatory overtime hours employees older than 16 may work in a particular workweek.
• Payment for overtime must normally be paid on the regularly scheduled payday for the pay period in which the wages were earned.
• Minimum wage is the minimum pay rate for non-exempt employees.
• Earnings may be based on salary, commission, or piece-rate.
• Regardless of a potential agreement between the employer and the employee, overtime wages cannot be waived. Overtime pay compensation is required in almost all situations, even if the employer has announced that no overtime work will be allowed.
• Private sector employees may only grant comp time as a reward; it may not replace overtime pay or the minimum wage.
• Employers are NOT required to pay overtime, under federal law:
  • For work on Saturdays, Sundays, or holidays.
  • To employees on standby unless employees are not permitted to use their standby time for personal pursuits.

FLSA Classification is defined under the FairPay Overtime Rules.

Information on Overtime for Non-exempt Employees

Those who are protected under the FLSA include non-management, blue-collar employees as well as “white collar” employees who are hourly or salaried but earn less than $455 per week who work for the following types of companies or organizations:

1. Engaged in interstate commerce
2. Gross $500,000 or more each year
3. Federal, state, or local government agencies
4. Hospitals and other medical institutions which care for the sick, aged, or mentally-ill
5. Educational institutions

Information on Overtime for Exempt Employees

For the most part, the following types of employees are exempt from (not eligible for) overtime pay.

1. White collar executive, administrative, and professional employees who earn a guaranteed salary in excess of $455 per week who regularly exercise discretion and independent judgment in significant matters.
2. Employees who earn more than $100,000 per year who also regularly perform the one or more of the exempt duties of executive, administrative, or professional employees.
3. Specific computer professionals who earn more than $455 in weekly salaries or $27.53 per hour depending on their specific job duties.

Job titles are irrelevant for determining an employee’s FLSA classification. Though there are exceptions, eligibility is based upon occupations, wages or salaries, and job duties.

Because of the complexities of employment and overtime pay law, you should consult with a knowledgeable overtime lawyer like Michael Lore to determine if you might have a valid overtime case against your employer. If you fill out our Case Evaluation Form as completely as you can, we will gladly help you decide if you might have a viable case.