The Fair Labor Standards Act has certain provisions when it comes to overtime pay. Unless exempt, all employees must receive overtime pay if they work more than 40 hours in a workweek. Just recently, the U.S. Department of Labor had finalized a new rule that would make 4.2 million salaried workers eligible for overtime pay. The rule, which is currently being fought against in court, would raise the salary threshold at which white-collar workers are exempt from overtime, from $23,660 to $47,476.
Who is Exempt From Overtime?
In order to qualify for overtime pay, your employer must be covered by FLSA regulations. Typically, if your business makes $500,000 or more in annual sales or you conduct business between states, you are covered by these regulations.
If your business meets these guidelines, that means all employees are entitled to overtime unless the employee is:
- Executive, administrative, and professional employees who are paid on a salary basis (until the new rule goes into effect)
- An independent contractor
- Outside salespeople (employees who regularly work away from the employer’s business, selling or taking orders to sell goods or services
- Certain computer specialists who earn at least $27.63 an hour
- Seasonal or recreational business employees such as a fair worker or ski resort employee
- Employees of organized camps/conference centers that operate less than seven months a year
- Employees of certain small newspapers
- Seamen and workers engaged in fishing operations
- Certain switchboard operators
- Criminal investigators
- Caregivers or babysitters
How Employers Get Away With Avoiding Overtime Laws
In order to prevent paying some employees overtime, employers can misclassify these employees. For instance, let’s say you work hourly as a stock boy at a department store. Although you are required to be paid overtime, your boss decides to classify you as a salaried worker in an administrative job. This is illegal and you should could consider taking legal action.
If you believe that you are being cheated out of overtime pay, we would like to discuss your case. Contact the employment lawyers at Sanford Heisler Sharp, LLP, today for an evaluation of your case.