The Fair Labor Standards Act (FLSA) provides guidelines employers must follow for overtime pay. When an employer requires or allows an employee to work overtime, they are obligated to pay that employee for their overtime work.
Employees who fall under the FLSA must receive overtime pay for the hours they worked that exceed 40 hours. The FLSA does not require an employer to pay overtime for hours that are worked on holidays or weekends.
There is no limit provided in the FLSA regarding the number of hours an individual works in a workweek. Different workweeks, however, may be formed for employees or groups of employees.
The overtime pay requirement cannot be waived using any employer and employee agreement. In addition, an employer is not permitted to block an employee from working overtime.
An employer also cannot require advance authorization for any overtime work. Employers cannot refuse to pay for any work an employee completes if it falls under the FLSA.
An employee has the right to receive compensation for the hours they worked. Overtime pay has to be calculated based on the average hourly rate derived from the earnings that are worked for during the workweek.
An employee’s earnings may be based on a:
- Piece-rate;
- Salary; or
- Commission.
What Are Overtime Pay Exemptions?
As noted above, the FLSA governs the requirements for overtime pay. The provisions of the FLSA provide that employers are required to pay certain employees an overtime rate, typically at least 1.5 times their normal rate of pay, if their hours worked exceed 40 hours during a given work week.
For example, if an employee is usually paid at a rate of $10 per hour, their overtime rate for 40 hours in a standard work week would be $15, as $10 per hour x 1.5 equals $15. In addition, the FLSA outlines the types of workers who may qualify for overtime payments.
A worker permitted to receive overtime pay is a non-exempt employee. In contrast, workers who do not qualify for overtime payments will be categorized as exempt.
When an employee is categorized as exempt, it means that the employee is not legally required to pay the employee an overtime rate for additional hours they work. This is referred to as overtime pay exemptions.
Overtime pay exemptions typically apply to salaried workers with unconventional work schedules or tasks. In the example above, the non-exempt employee would receive $15 per hour for every extra work they do that exceeds 40 hours in the standard work week.
In contrast, the exempt employee would not receive any overtime pay for their additional hours. Therefore, the exempt employee should not expect to see any change in their regular paycheck unless their employment contract states otherwise.
Which Types of Workers Are Exempt from Overtime Pay?
As noted above, the FLSA divides workers into exempt and non-exempt categories. It also provides further instructions regarding when an employee is considered exempt from overtime pay.
Typically, this entails determining whether or not an employee is paid on a salary basis. This usually includes workers who earn more than $100,000 per year.
It will also depend on whether their work tasks fall into one of the five main categories of exemptions. Common examples of the types of workers who might be exempt from overtime pay include:
- Small farm workers and certain categories of agricultural employees;
- Certain types of newspaper jobs, carriers, or vendors;
- Any worker who is required to sleep at their workplace, such as overnight babysitters or live-in healthcare workers;
- Public officials;
- Employees of motion picture theaters;
- Volunteers;
- This typically applies more to non-profit organizations;
- Seasonal workers, for example, staff who are employed by ski resorts or amusement parks;
- Seamen for foreign vessels or employees of fishing operations;
- Various types of workers who are employed in the service industry or the retail space industry get paid in commission or tips;
- Some transportation employees, for example, taxicab drivers and railroad or airline employees;
- External sales force employees, for example, workers who sell vehicles but are not employed by the manufacturers;
- Forest protection and fire prevention laborers; and
- Salaried employees:
- Who have roles as executives;
- Who are administrative staff; or
- Who are considered professional employees or white-collar workers.
Numerous miscellaneous positions may exempt a worker from receiving overtime payments. This is because, in most cases, applying the definition of overtime exemption will depend on the tasks performed by the worker instead of their job description or job title.
Because of this, an employee needs to review their employment contract and employee handbook to determine whether or not they fall under the definition of an exempt or non-exempt employee and, therefore, may be owed overtime pay.
What Happens When Overtime Laws Are Violated?
Employees exempt from overtime payments will not have legal recourse if overtime laws are violated. Under the law, these individuals simply cannot collect overtime pay.
Therefore, if exempt employees seek additional funds for extra hours they worked, they will be required to consult with their employer about getting a raise. They may also attempt to negotiate with their employer to obtain a bonus.
For workers who are classified as non-exempt employees, their employers are legally required to pay those workers overtime for any hours they worked that exceeded the required amount of hours. If the employer does not comply with the FLSA guidelines or with the applicable state laws governing overtime pay, the non-exempt employee can file a claim with the Equal Employment Opportunity Commission (EEOC).
Once the claim is filed, the EEOC will conduct an investigation into the employer, which may lead to the worker obtaining relief, the employer being required to change their company policies, or both. If the results of the EEOC investigation are not satisfactory for the worker, the worker may file a wage and hour lawsuit in a court of law.
If a non-exempt employee brings a successful lawsuit, they will most likely receive a damages award that will reimburse them for their lost wages as well as other expenses that they incurred as a result of the employer’s violation.
Do I Need to Hire a Lawyer for Help with Overtime Pay Laws?
Disputes involving overtime laws require the assistance of an attorney. If you are involved in a dispute with your employer about your overtime pay, it is in your best interests to consult an employment attorney for further assistance.
Your attorney can guide you through the filing process for your EEOC complaint and your lawsuit in court if required. Your lawyer can also help you determine whether you qualify as a non-exempt employee and should receive overtime payments per the FLSA and the laws of your state.
If you must make a court appearance, your attorney will represent you during any hearing, case-related meeting, or other appearances.
