The Federal Fair Labor Standards Act (FLSA) is a labor law in the United States that sets out the minimum wage, overtime pay, and other employment standards for both full-time and part-time workers.
According to this act, employees who work more than 40 hours in a workweek are entitled to receive one and a half times their regular pay rate for any additional hours worked. However, to qualify for overtime pay, the employee must be considered a “non-exempt, ” meaning they are not exempted from the FLSA.
Not all employees are covered by the FLSA, as some are exempted from the law’s overtime requirements based on specific criteria. These employees are known as “exempt” employees.
Specific categories of workers, such as executives, administrative employees, and professionals, are generally considered exempt from overtime pay under the FLSA. However, to be classified as exempt, the employees must meet specific salary and job duties tests defined by the FLSA.
Even if an employee is classified as exempt, they are still entitled to receive the minimum wage and other employment standards set by the FLSA. The exemption only applies to the overtime requirements of the law. The FLSA is designed to protect workers and ensure they receive fair compensation for their work while promoting economic growth and productivity.
What are Exempt Employees?
The term “exempt employees” refers to employees exempted from the overtime pay requirements of the FLSA. These are typically considered “white collar” workers who perform non-manual or office work. In contrast, “blue-collar” workers usually perform manual labor and tasks that require physical skill and energy.
There are four main categories of exempt employees under the FLSA. The first category is professional employees paid on a salary or fee basis. This includes employees with specialized knowledge and skills, such as doctors, lawyers, and architects.
The second category of exempt employees is executive employees, who are paid on a salary basis. This includes employees who manage a company or a department, make significant decisions regarding the company’s operations, and supervise other employees.
The third category is administrative employees, who are paid on a salary or fee basis. This includes employees who perform administrative duties related to the company’s management or general business operations.
Finally, the fourth category is outside sales employees. These employees are exempted from the overtime pay requirements of the FLSA if their primary duty is to make sales or obtain orders or contracts for services or the use of facilities for which the client or customer will pay a consideration.
What are Professional Employees?
Professional employees are exempt under the FLSA and are typically paid on a salary or fee basis. These employees must have advanced knowledge in a specialized field of learning, which they have acquired through specialized studies, such as a college degree.
Professional employees can include many occupations, including lawyers, doctors, teachers, engineers, and scientists. In addition, employees who perform original or artistic work and are a product of their talent, imagination, and invention are also considered professional employees.
Professional employees typically perform mostly intellectual work, and their job duties require them to use discretion and independent judgment in performing their work. They are expected to apply their advanced knowledge and skills to analyze and solve complex problems and make decisions that significantly impact the organization.
What are Executive Employees?
Executive employees are exempt under the FLSA and are typically paid on a salary basis. These employees are responsible for managing a business or a part of a business, and their job duties involve directing the work of others.
Executive employees typically have significant influence or authority concerning hiring, termination, and other employment decisions. They may also be responsible for setting budgets, developing strategies, and making important decisions that affect the company’s overall direction.
In addition to managing others, executive employees may perform other job duties related to their role, such as training, supervising, and evaluating employees. They may also ensure that their department or business unit meets its financial and operational goals.
What are Administrative Employees?
Administrative employees are exempt under the FLSA and may be paid on a salary or fee basis. These employees perform duties related to the employer’s business operations and policies or the employer’s customer’s business operations and policies.
Administrative employees typically exercise discretion and judgment when deciding their job duties. They assist with the running or servicing the business, which may include tasks such as record-keeping, accounting, human resources, and other administrative functions.
Unlike employees who work on an assembly line or sell products in retail stores, administrative employees are not involved in producing or selling the company’s products or services. Instead, they provide support and assistance to ensure that the business operations run smoothly.
What are Outside Sales Employees?
Outside sales employees are exempt under the FLSA who perform specific sales duties. An employee’s primary duty must consist of making sales or obtaining contracts for services or orders or using facilities for which a client or customer pays a consideration, typically money, to qualify as an outside sales employee.
In addition to their primary duty, outside sales employees must regularly and customarily perform their work away from the employer’s worksite. This means they spend a significant amount of time traveling to meet with clients or customers and conducting sales outside of the office.
Outside sales employees typically work independently and are responsible for building relationships with clients and customers to generate sales. They may also negotiate contracts, provide product demonstrations, and handle customer inquiries and complaints.
When are Exempt Employees Entitled to Overtime Pay?
Generally, employers can require exempt employees to put in as much work as necessary. However, exempt employees must meet a salary threshold to retain their exempt status. They must be paid the equivalent of $684 per week, or $35,568 per year, or more.
If an employer does not pay an exempt employee at least this amount, the employer must either raise the employee’s salary or reclassify the employee as non-exempt. If an employee is reclassified as non-exempt, that employee is entitled to overtime pay. This overtime pay is referred to as “mandatory overtime pay.”
Can an Employment Agreement Forbid Overtime Payment?
Generally, employers and employees are free to enter into an employment agreement of their choosing. This means they may bargain over wages, salary, and benefits. An employer and an employee can agree that the employee is forbidden to perform more than 40 hours of work in a workweek.
However, an agreement cannot require the performance of an illegal act. This means that an agreement cannot require an employee to forego overtime pay to which they are entitled under the FLSA.
Can I Sue if I Am Not Paid for Mandatory Overtime?
Under the FLSA, employers must keep records of all hours worked by employees. If an employee is not paid for mandatory overtime, that employee can file a civil lawsuit. During the lawsuit, the process of discovery will occur. In this process, the parties exchange case-related documents and answer questions.
The court will evaluate the documents. If the employer’s records reveal an employee was not paid for mandatory overtime, the court can order the employer to pay the employee that overtime.
Do I Need the Help of a Lawyer With Mandatory Overtime Pay Issues?
If you have not been compensated for overtime work or have not been paid mandatory overtime, seek the assistance of an employment attorney.
An employment attorney can evaluate your case and determine whether you have a valid claim for unpaid overtime. They can also help you file a complaint with the appropriate agency or file a lawsuit in court.
In addition to representing you in legal proceedings, an employment attorney can negotiate with your employer to resolve the issue outside of court.
If you are experiencing mandatory overtime pay issues, it is highly recommended that you seek the help of an experienced employment attorney. Use LegalMatch to find an employment lawyer to help you protect your rights and ensure you receive the compensation you deserve for your hard work.
