Employee Overtime
Employee Overtime
Wages for overtime work hours are a common cause of contention among US employers and employees. Often, an employer might require a staff member to work overtime without wanting to pay the wage cost.
On the other hand, several employees don’t exactly know what constitutes overtime: whether it involves daily or weekly work hours. Let’s help you answer some crucial questions on employee overtime, including how workers should get paid when they work more than 40 hours a week.
Defining Overtime
The exact definition of overtime is confusing for some employers and employees. According to the Fair Labor Standards Act (FLSA), employers must pay non-exempt employees 50% (time and a half) of their standard hourly wage for every hour worked above the 40-hour weekly standard (eight hours a day for five workdays in a week).
However, some workers interpret this law using daily work hours. For example, a non-exempt staff member who works 15 hours on Monday believes they should receive overtime pay for the additional seven work hours.
According to the FLSA, the employee is only eligible for overtime wages if their total hours at the end of the week exceeds 40 hours. In other words, even if a staff member works 15 hours on Monday but works five hours on Wednesday and stays within the 40-hour standard at the end of the week, they’re not entitled to overtime pay.
That said, some states in the US use a daily standard. For example, in California, employees receive overtime wages for every extra hour they work daily beyond the standard eight-hour workday.
Aside from determining the standard work hours for overtime, the FLSA also defines which employers can pay overtime and which workers can receive wages for overtime hours.
Which Employers Must Pay Overtime?
The FLSA doesn’t require all employers in the US to pay overtime. Generally, businesses that have $500,000 in annual sales must pay overtime. The law also requires companies with staff members that work in interstate commerce (execute business duties between states) to pay overtime.
This business may include making calls or sending emails to other US states. Furthermore, some companies may not fall under the FLSA laws; however, their resident states may have overtime laws that require them to pay overtime wages.
So, even if your company doesn’t fall under the FLSA category, you should contact your state’s labor department to determine if state laws require you to pay overtime.
Which Employees Are Eligible for Overtime?
If your business falls under the FLSA or state category of companies to pay overtime wages, then all your employees are eligible for overtime wages. However, US laws exempt some staff members from receiving overtime pay. They include:
- Professional, administrative, and executive staff members who are on a paid salary
- Outside salespersons (employees that sell goods or services away from the office location)
- Newspaper deliverers
- Volunteer staff (this exception does not typically apply to businesses established for profit)
- Specific computer technicians (programmers or software engineers) with a minimum salary of $27.63
- Seamen
- Specific switchboard operators and criminal investigators
- Casual babysitters and caregivers that offer companionship to people who cannot look after themselves (this category doesn’t include nursing care and some specific home care workers who provide some domestic services)
- Small farm staff
- Independent contractors
- Workers in seasonal amusement and recreational establishments, such as ski resorts
- Organized camps and nonprofit/religious educational conference centers that are active for less than seven months in a year
- Small newspaper workers
How Do Employers Try to Avoid Overtime Payment?
Some employers may try to avoid paying overtime by requesting their workers to clock out after standard work hours while continuing to work at the office. However, according to US laws, if the company receives benefits from a staff member’s overtime work hours, it must pay for the additional hours.
Companies that have rules that employees should not exceed 40 hours per week must still pay overtime if a staff member works extra hours at the end of a workweek.
Furthermore, some company executives require their staff to sign contracts that state that they’ll not receive overtime wages if they work above 40 hours a week. These contracts are illegal according to US laws, and the employee must still receive their overtime wages.
While the FLSA also exempts salaried executive, professional, and administrative employees from receiving overtime, these individuals must have a minimum salary of $455 per week to fall under this category.
However, some employers exempt all salaried professional, administrative, and executive workers from overtime wages regardless of their weekly salary.
This exemption is illegal according to US laws; if an employee doesn’t fall under the exempt category, they must receive overtime for extra work hours they spend at the office.
Conclusion
Overtime wages are a complex issue in offices across the US, especially since many company executives may want to bend the rules to avoid paying eligible employees. If your employer refuses to pay you for overtime work hours, you may need to speak to the company’s human resource department.
If the issue lingers, it’s time to hire an attorney to come to your aid. At the Law Office of Sheri Oluyemi, our legal team has decades of expertise in US employment law cases. We can help you get justice against your employer and recover all lost wages. Reach out to us today for a free teleconference.
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