There is a lot of confusion surrounding the FLSA (Fair Labor Standards Act) for both employers and employees. Most jobs are governed by the FLSA, but the rules and regulations can be complicated and many people find them unclear. To better understand FLSA, we have compiled a list of the most common misunderstandings involved with it:

  1. Many employers think that because their business is small, they are not covered by the FLSA. However, what many don’t realize is that the FLSA doesn’t depend on the number of employees – it covers all employees whose work may entail or relate to interstate commerce, which is any work that involves the movement of people or products across state lines. As a general rule, most businesses should assume they are governed by the FLSA.
  2. The fact that an employee is considered ” salaried” or “exempt” doesn’t always mean that they are excluded from being paid overtime. Many people (such as secretaries and file clerks) have salaried wages, but are non-exempt. Even if someone is given a job title that implies they are higher up in company, such sales manager, not eligible for overtime pay. The determining factor for eligibility is the pay duties test constructed by u.s. department of labor.
  3. Some employers feel that if their non-exempt workers volunteer to work overtime without being paid that they are not responsible for it. However, even with consent, a wage claim or lawsuit is possible. Employees can’t waive their rights to receive wages for working overtime; they must be paid for every hour worked under the FLSA.
  4. There are some employers who feel that allowing their employees to keep their own time records is a good idea. The regulations of the FLSA require employers to keep detailed records of the hours worked by non-exempt workers. However, if an employer allows their workers to keep their own time, this could be problematic. For instance, if an employee decided to file a wage claim, there would be no actual proof that the employer could provide to dispute it.
  5. Aside from government jobs, compensatory time cannot be given to employees instead of overtime pay. Furthermore, FLSA overtime laws state that if a public employer does decide to give comp time to a nonexempt employee instead of cash, they must do so on a time and half basis.

If you aren’t sure whether your company is giving you fair compensation for overtime, contact us at The Lore Law Firm today. We know the ins and outs of overtime laws in each state and can defend your rights!

Michael Lore is the founder of The Lore Law Firm. For over 25 years, his law practice and experience extend from representing individuals in all aspects of labor & employment law, with a concentration in class and collective actions seeking to recover unpaid back overtime wages, to matters involving executive severance negotiations, non-compete provisions and serious personal injury (work and non-work related). He has handled matters both in the state and federal courts nationwide as well as via related administrative agencies. If you have any questions about this article, you can contact Michael by using our chat functionality.