Overtime Pay Misconceptions Debunked
The Fair Labor Standards Act (the “FLSA”) mandated overtime wages for certain employees who work more than 40 hours in any given week. Even though this law has on the books for over 80 years, employers and employees alike still have misconceptions about the protections this law affords.
Employers seize upon the lack of clarity by denying overtime pay to their employees. For example, employers routinely misclassify workers as allegedly “exempt” from overtime pay. Lets clarify five misconceptions about overtime.
1. Working on Salary, by Itself, Does Not Make you Exempt from Overtime Pay
Some, but not all, salary workers are exempt from overtime. It depends on their job duties and the amount of money they make, not solely because they are paid on salary. The FLSA currently exempts workers paid a salary that equals $455 a week or more. Anything less than that requires time and a half for every hour worked over 40 in any given week.
If you are paid on a salary, try converting the salary to its hourly equivalent. There are many online calculators that will do this for you. To determine the amount you should be paid for overtime, as a salaried nonexempt employee, multiple the salary’s hourly equivalent by 1.5.
2. Professionals Can Qualify for Overtime Pay
Just like being paid on a salary, a job title, alone, does not dictate whether or not you get overtime pay. Unless you are paid a certain amount or your duties fall within a very narrowly defined scope, you must be paid overtime, even if you are the “assistant to the assistant of the regional manager.” As stated above, employees who make over $455 or more a week and are in a position with duties that the FLSA would consider management (defined by law) do not qualify for overtime.
Slick employers looking to line their pockets will give employees inflated titles, then tell them they are exempt from overtime. It is the specific day-to-day job duties that determine whether you are entitled to overtime. For example, an employer might give employees the title “manager,” claiming the job duties fall under this narrow exemption from overtime.
However, if the “manger’s” actual job duties are the exact same as any other employee, those “managers” would be entitled to overtime. Misclassifications like this are illegal because only employees whose jobs involve actually managing people, or whose decisions carry weight within the organization, are exempt from overtime.
3. Those Little Tasks Are Worth Overtime Pay
All work done must be compensated, under the FLSA, whether you are paid hourly or work on a salary basis. This includes the entire shift time, including breaks and “nonproductive” time (time at work where there is nothing to do). Additionally, all time spent by an employee performing work-related tasks that the employer requires or allows is considered work time.
For example, if you come in early to start work, stay late to finish work, or do work at home, you must be compensated as long as your employer knows, or should know, this work is being done, and permits you to do it.
The FLSA requires employers to pay for certain work-related activities:
- Checking or responding to voicemails, emails, or text messages;
- Changing into uniforms or other clothing, if integral to work;
- Commuting to work if employee picks up other workers or supplies;
- Travel between worksites;
- Business travel during regularly scheduled hours;
- Required training or meetings;
- Time spent waiting to work due to system/equipment failure;
- Pre-work and post-work activities that are necessary to do the job, such as cleaning equipment.
4. Overtime Pay Does Not Have to be “Approved”
Employers cannot deny you overtime because you did not get “approval” first. If you work overtime, you are entitled to overtime. Employers can discipline employees who work unauthorized overtime but they still must pay them overtime for all hours worked.
5. Overtime Pay Cannot Be Averaged Out Over Two Weeks
The Department of Labor, tasked with carrying out the FLSA, considers a workweek to be any seven consecutive 24-hour periods, which can start on any day and at any time of day. Typically, but not always, this will be Monday to Sunday. Overtime is calculated by the week it was worked in, regardless of the employer’s pay cycle.
For example, assume you are paid biweekly. You work 35 hours for the first week of the pay period. The second week of the pay period you work 45. You would be titled to 5 hours of overtime for the second week. Your employer cannot average the two weeks together and claim you are not owed overtime because you worked 80 hours “this pay period.”
So How Do You Fight Wage Theft?
If you suspect that you have been denied overtime based on some misconception of the law, you are entitled to your lost wages. Employees are protected from retaliation by the FLSA, so you do not need to be afraid of losing your job to come forward to claim lost wages. If you think you have unfairly been denied overtime, Gulisano Law’s overtime lawyers may be able to help. Contact us today for a free case evaluation.