Common Wage and Hour Violations

In a market economy, every employer is trying to make as much profit as possible. Business efficiency and innovation support the economy, but many employers try to trim expenses by improperly withholding money from their workforce. Whether intentional or not, a large percentage of employers nationwide commit one or more common wage and hour violations.

When you suspect you are not being paid fairly for working overtime, contact an experienced wage and hour attorney at The Lore Law Firm. We are happy to review your situation and help you to understand the law in your jurisdiction. If it turns out that you have a viable claim against your employer, we can explore your legal options together. We work on a contingent fee basis, so there are no fees unless we win.

Misclassifying Workers

Under the federal Fair Labor Standards Act, workers are entitled to be paid time-and-a-half after they have worked 40 hours in a week. Some states are more generous and mandate overtime for workers after they have worked a given number of hours in a day, typically 8 or 12. 

Some workers are not entitled to minimum wage and overtime, and employers may place workers in one of those categories when they should be considered regular “non-exempt” employees. This is called misclassification and is a form of wage theft. Contact a workers’ rights attorney at our firm immediately if you believe you have been misclassified.

Exempt Employees

29 United States Code § 213(a)(1) exempts higher-level employees from the wage and hour requirements. Employees awarded exempt status must typically make a minimum salary or hourly rate that is multiple of the minimum wage, which varies by state. An employer might give a worker a title that sounds impressive and call them exempt. However, even if the wage requirements are met, when the worker’s duties do not include the responsibilities normally associated with managerial or executive positions, it is likely the employer is trying to avoid paying the worker overtime.

An executive must be involved in the management of an enterprise, subdivision, or department, and must regularly exercise independent judgement. They must have the authority to make hiring decisions, or at least have significant input, and must directly supervise at least two other employees.

Administrative workers must have the primary duty of supporting executive functions and general business operations with non-manual labor. They receive only general supervision and exercise independent discretion and judgment.

Professional employees are those licensed to practice the following licensed professions: accounting, architecture, dentistry, engineering, law, medicine, optometry, and teaching. Employees engaged in work requiring advanced knowledge and skills or creating original work in an artistic endeavor also can be classified as professional employees.

Computer Professionals

People who work as computer systems analysts, computer programmers, software engineers or similar, may be exempt from overtime wage laws. However, they must meet both a wage test and perform specific job duties to qualify as exempt.

A computer professional must earn at least $684/week ($844/week after July 1, 2024) or an hourly rate of at least $27.63 per hour. To meet the wage test for an exempt worker. Determining whether a computer worker’s job duties qualify them to be considered exempt requires the application of a complicated two-part test. A wage and hour violation lawyer can help a worker determine whether they should be exempt. 

Independent Contractors

Classifying a worker as an independent contractor is a common way employers get skilled help more cheaply. Independent contractors are not entitled to any benefits, including overtime.

An independent contractor is typically in business for themselves and can work for more than one client. When the employer prohibits a worker from performing the same services for others, the worker might not be an independent contractor. 

Similarly, an independent contractor chooses how they will accomplish the assigned task, uses their own tools or equipment, and often determines when they will work to complete the project by the assigned deadline. When the employer controls most of these aspects, the worker should probably be classified as an employee entitled to overtime and benefits. A worker who successfully challenges the employer’s classification could be entitled to double back overtime pay, plus additional compensation, as well as an award for attorney’s fees and costs.

Failing to Pay for All Time Worked

Another common way employers steal wages from workers is by not paying for all the time they actually work. There are several ways employers accomplish this.

An employer might require workers to work “off the clock” by preparing their stations before they clock in or clean their work area after they clock out. An employer might deny its workers paid breaks and mealtime, even though state law requires them. The worker might be required to attend training or meetings without pay, or the employer might not pay for travel time between job sites or to work-related events.

When employers demand work off the clock, they violate wage and hours laws. Speak with an experienced worker’s rights lawyer about how you should respond.

Failing to Include All Compensation When Determining the Overtime Pay Rate

When an employee is entitled to overtime, they get one and half times their regular rate of pay for their excess hours. However, determining the regular pay rate is not always straightforward. Employers sometimes undervalue the employee’s true rate of pay.

Rate of pay encompasses more than just wages. For example, bonuses or incentives paid to encourage productivity, safety, or accuracy should be included in determining the worker’s regular rate of pay. Shift differentials and on-call fees must also be included.

Many employers fail to include these additional pay items when calculating overtime pay rates. If you believe you have been paid an overtime rate that is too low, contact our unpaid overtime attorneys. We can review your situation and pursue your employer for back wages and penalties.

Contact Our Firm to Get Help With Wage and Hours Violations

Making a living is already tough enough. When your employer is stealing from you, keeping your head above water can be nearly impossible.

Wage theft is extremely common, and there are many ways employers try to get away with it. Talk to one of our lawyers about common wage and hours violations and what to do about them. Contact us today for a free and confidential review.