Overtime and Wage Disputes

The Fair Labor Standards Act (“FLSA”) governs the rules set forth for overtime compensation. The biggest determining factor in regards to whether an employee is eligible for overtime pay or not, depends on an employee’s classification status. Under the FLSA laws, there are two types of classifications in the case of overtime “Exempt Employee” and a “Non-Exempt Employee”.

Common positions exempt from overtime by the FLSA are those employees that are salaried occupying managerial positions. For these types of positions, their job title is not determinative of whether or not they are entitled to receiving overtime under the FLSA. Exempt employees are often those who manage or direct employees in positions that require advanced education. The specific responsibilities the employee performs determine whether an employee is exempt or not.

Non-exempt employees are those individuals whose compensation includes hourly and salary and are not specifically exempt from being paid overtime. To qualify for overtime compensation, non-exempt employees must work in excess of 40 hours in a 7-day workweek. Holiday pay or sick pay is not counted towards the 40 hour requirement.  The standard calculation in determining overtime is generally based on an employee’s regular pay rate and for each hour worked in excess of 40 hours, wages must be paid at one and one-half rate of the hourly pay rate. In situations where regular pay rate is less than the state’s minimum wage requirements, the legal minimum wage rate is substituted as the regular rate of pay.

Wage claims can also include claims for unpaid wages, unpaid overtime pay, and claims where employers paid wages below the minimum wage rate. Heitz and Bromberek law firm litigates wage theft (overtime and compensation disputes) for both employers as well as employees. If you have a question regarding a wage dispute or overtime, give us a call.