Merchandisers
Overtime Pay for Merchandisers: Who is supposed to get it?
The U.S. Department of Labor summarizes the provisions for overtime pay in the Fair Labor Standards Act in just one simple sentence, “An employer who requires or permits an employee to work overtime is generally required to pay the employee premium pay for such overtime work.” While this seems like a simple idea, the fact that each state has a different wrinkle in their laws for overtime pay for merchandisers and other workers, violations of the laws still occur. That being said, the Fair Labor Standards Act still serves as the foundation for overtime law in the United States and particular areas of the act still provide the most violation of overtime pay laws.
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Non-exempt workers who are more commonly referred to as employees covered by the FLSA, have to receive at least time and one-half their regular pay rate for each hour they work beyond 40 in their workweek.
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Averaging of hours over two or more weeks in order to avoid overtime payment is not allowed.
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The Fair Labor Standards Act does not limit the number of hours that demand mandatory overtime that an employee above the age of 16 may work in a particular work week.
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Payment for overtime must normally be paid on the regularly scheduled payday for the pay period in which the wages were earned.
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The regular pay rate for non-exempt employees must be at least the minimum wage.
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Earnings may be based on salary, commission, or piece-rate.
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Contrary to what some employers and employees believe, an agreement between the two of them does not waive overtime wages, if both parties come to an agreement. Even in cases where the employer makes it clear in advance that overtime work will not be compensated, they are often required to pay their employee overtime wages if they work past 40 hours per week.
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Private sector employees may only grant comp time as a reward; it may not replace overtime pay or the minimum wage.
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Although some employers will offer overtime pay, employers are NOT required to pay overtime, under federal law:
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For work on Saturdays, Sundays, or holidays.
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To employees on standby unless employees are not permitted to use their standby time for personal pursuits.
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Fair Labor Standards Act Classification is explained under the FairPay Overtime Rules
Non-exempt Employees
Employees who are protected under the Fair Labor Standards Act include “blue collar” employees and “white collar” employees who are compensated either hourly or through a salary of not more than $455 per week – and work for organizations or companies described by the list below:
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Engaged in interstate commerce
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Gross $500,000 or more each year
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Federal, state, or local government agencies
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Hospitals and other medical institutions which care for the sick, aged, or mentally-ill
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Educational institutions
In almost all cases, the types of employees listed below are not eligible (exempt) to receive overtime wages
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Any white collar administrative, executive, and professional employee who receive a guaranteed salary that exceeds $455 per week and must routinely exercise independent judgment and discretion in important business matters is not eligible for overtime pay.
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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.
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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.
