Overtime arises when an employee works over 40 hours during a workweek. The Fair Labor Standards Act (FLSA), a federal law enacted by Congress in 1938, enshrined the regulations governing overtime pay.
The FLSA outlines requirements for various aspects of employment, such as:
- Minimum Wage: Employers must pay employees at least the federal minimum wage.
- Overtime: Employers must compensate employees with overtime pay for hours worked beyond the standard 40-hour workweek.
- Child Labor: Employers must adhere to the child labor laws established under the FLSA.
- Record Keeping: Employers must maintain records of hours worked, wages paid, and other wage-related documents.
As stipulated by the FLSA, employers must pay employees who work more than 40 hours in a workweek at a rate of one and a half times their regular pay, also known as overtime pay.
For instance, if an employee works 50 hours in a workweek and earns $10 per hour, they would receive $15 per hour for the extra 10 hours worked.
Employers must always pay overtime pay, regardless of whether the overtime work was authorized or not.
What Are Overtime Exemptions?
Overtime exemptions are specific provisions under the FLSA that permit employers to forgo paying overtime pay to certain exempt employees. These exempt employees are usually salaried employees, as opposed to hourly workers. Nonetheless, salaried employees may also be eligible for overtime payments, similar to hourly employees.
To be eligible for overtime pay, a salaried employee must:
- Be classified as non-exempt: This means that the employee is not exempt from the FLSA’s overtime provisions and is therefore entitled to overtime pay for any hours worked over 40 in a workweek.
- Earn less than a certain threshold: In 2023, the threshold for salaried employees to be eligible for overtime pay is $684 per week ($35,568 per year). This means that salaried employees who earn less than this amount are generally eligible for overtime pay.
- Perform non-exempt job duties: The employee must perform job duties considered non-exempt under the FLSA. This means the job duties are not executive, administrative, or professional.
The FLSA primarily considers an employee’s duties and responsibilities when determining if an employer must pay overtime. Employees with more independence, decision-making authority, or professional licenses (e.g., doctors, engineers, school teachers, or attorneys) will likely be classified as exempt employees.
FLSA exemptions apply to employees who perform high-level work or earn a certain salary, such as over $100,000.
It is advisable to consult the FLSA or seek the advice of an employment law attorney to determine whether a particular position is exempt or non-exempt.
What Are Common Violations of Overtime Wage Requirements?
Employers cannot deny overtime wages to non-exempt employees. If employees work over 40 hours in a workweek, regardless of authorization, they must receive overtime wages as mandated by the FLSA.
However, this does not preclude employers from taking disciplinary action against employees who fail to obtain pre-approval for working overtime or violate company policies regarding overtime work. Employers can terminate employees for breaching company overtime policies, but they must still compensate them for any overtime worked.
To recover unpaid overtime wages under the FLSA, an employee must demonstrate the following:
Existence of an Employee-Employer Relationship
This element is generally easy to prove, as it only requires employees to demonstrate that they work for the employer. Evidence that may demonstrate this element includes pay stubs, W-2 forms, employment contracts, emails, or other correspondence with the employer.
Non-Exempt Status of the Employee Under the FLSA
To demonstrate that they are non-exempt under the FLSA, an employee must show that their job duties do not fall within one of the exemptions under the law.
For example, if an employee works as a computer programmer, they may be exempt from overtime pay if they meet certain requirements, such as receiving a certain minimum salary and performing certain job duties.
If the employee does not meet the requirements for an exemption, they may be eligible for overtime pay. The employee may need to provide evidence of their job duties, such as a job description or testimony from coworkers or supervisors, to demonstrate that they are non-exempt.
Employer’s Failure to Pay Overtime Wages as Required by the FLSA
To demonstrate that their employer has failed to pay overtime wages as required by the FLSA, an employee may need to provide evidence of the hours they worked, such as timesheets or work schedules, as well as evidence of their regular pay rate and overtime rate.
The employee may also need to provide evidence that they requested overtime pay and that their employer refused.
Employers may violate the FLSA in several ways, including:
- Refusing to pay overtime wages for unauthorized overtime work, with some exceptions for employees who worked covertly;
- Calculating overtime based on a monthly or bi-weekly period rather than the 40-hour standard outlined in the FLSA;
- Excluding travel time from overtime calculations;
- Incorrectly assuming that all salaried employees are exempt under the FLSA; and
- Attempting to have non-exempt employees waive their right to receive overtime pay, which is not permissible under the FLSA.
What Are the Penalties for Withholding Overtime Pay?
Employers who withhold overtime pay from employees may face various penalties, such as:
- Back Pay: The most prevalent penalty for withholding overtime pay involves paying the withheld overtime wages.
- Liquidated Damages: The Department of Labor (DOL) may impose liquidated damages, which could double or multiply the amount of back pay an employer failed to provide.
- Statutory Penalties: Employers may also face civil penalties of up to $1,000 for each overtime pay violation.
- Attorney Fees: If an employee hires an attorney to represent them in a civil claim for unpaid overtime wages, they may also recover their attorney fees.
Before an employee can file a civil lawsuit against an employer for withholding overtime pay, they must first submit a wage claim with the Equal Employment Opportunity Commission (EEOC). The EEOC will then investigate to determine the appropriate remedies, if any.
If the EEOC’s investigation does not result in a favorable decision for the employee, they may obtain a right-to-sue letter and initiate a civil lawsuit against their employer.
Should I Hire an Attorney for Overtime Wage Disputes?
If you work more than 40 hours per week, you have the federal right to receive overtime pay as an employee.
If your employer has denied you payment for overtime hours or is withholding your overtime pay, consult a skilled employment attorney in your area.
A knowledgeable employment attorney can assist you in navigating the administrative process of filing a wage claim and initiating a civil lawsuit against your employer to recover all unpaid overtime wages. An attorney can also represent you in court if required.
LegalMatch is a legal services provider that can help you find an experienced employment attorney in your area to assist you with your unpaid overtime wages claim.
With LegalMatch, you can submit a summary of your case for free, and the platform will match you with qualified attorneys in your region who have experience handling similar cases.
Using LegalMatch, you can quickly and easily connect with attorneys offering you legal advice and representation while recovering your unpaid overtime wages.
