Pursuant to the Fair Labor Standards Act (FLSA), certain employers must pay overtime wages to certain employees who work more than forty (40) hours in a work week.
Overtime can be expensive and employers may be tempted or inadvertently avoid paying those wages when due. 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 the FLSA and the Department of Labor Wage and Hour Division (DOL WHD), 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 the following categories of employees:
- executive,
- professional, and
- administrative employees
from receiving overtime, these individuals must have a minimum salary of $684 per week, must be paid on a salaried basis and must meet the duties test to fall under any of these exemptions.
Overtime is complex issue, especially since many company executives may want to bend the rules to avoid paying eligible employees. If you have problems with paying overtime wages, you may need to speak with and educate your human resource department. If the issue lingers or you have received a complaint, 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. Reach out to us today for a free teleconference.