Overtime Pay: Make Sure You Are Compensated For Your Work

Syracuse, NYIt is a set of laws that many people know exist but few people fully understand. Among other things, the Fair Labor Standards Act sets out overtime laws such as overtime pay and exemption. When these overtime rules are not followed, employees are not paid what they are entitled to. Under the Fair Labor Standards Act (FLSA), employees can file a lawsuit if they have been improperly denied overtime pay.

The Fair Labor Standards Act of 1938 is a United States federal law that, among other things, guaranteed time and a half for overtime hours worked in certain jobs. Employees working in positions considered "exempt" are not eligible for overtime pay. In 2004, changes were made to the FLSA, affecting who was considered exempt from overtime pay. With this change, low-level supervisors found themselves newly classified as executives and, with this move, lost their overtime pay.

Changes have been made so that a person's job title is not necessarily the determining factor in whether or not someone is eligible for overtime pay. That is because someone classified as an "executive assistant" may actually have job duties that are entirely non-managerial. So, it falls to a person's actual job duties and rate of pay, as set out by the FLSA, to determine eligibility for overtime pay.

Furthermore, an employer cannot misclassify an employee as an independent contractor to avoid paying overtime wages. In such cases, the courts consider the relationship between the employer and the worker to determine whether or not the worker is, in fact, an independent contractor.

Employees who are considered eligible for overtime wages, that is they are non-exempt, may still have difficulty receiving their proper pay. Some employers request employees do extra work off the clock or fail to keep proper records of overtime hours worked. In other situations, employees may not be paid for activities before or after their shifts or for travel time between job sites.

Overtime pay is equal to one and one-half the employee's regular rate of pay, and that amount can add up over the span of a job. While many people may consider only that they do not receive the proper pay for a half hour here or an hour there, consider that an extra hour worked every week adds up to 52 extra hours a year. In the end, that is a lot of money an employee is entitled to that he or she does not get.

Where employers have failed to pay non-exempt employees for overtime hours, the courts have sided with employees in awarding back wages. In May 2009, the owner of Walk on Wood agreed to pay 24 employees more than $20,000 in back wages and interest to settle a lawsuit alleging FLSA violations. An investigation into the company's practices allegedly found violations of overtime rules and record-keeping rules.

Although that may not seem like a lot of money per employee, approximately $830 each, that is money the employees were entitled to and should have been paid, according to the courts. It is also more money than they would have received if they had not filed a lawsuit. Finally, the lawsuit may help to ensure that this employer properly pays employees overtime wages in the future.

While you might want to believe that your employer is looking out for you and has your best interests at heart, it is a good idea to know and understand the FLSA, especially if you have been told you are exempt from overtime pay. It is entirely possible that your employer is correct and you are not eligible to receive time and a half, but it is far better that you know and understand this yourself, to make sure that your employer is not just trying to get out of paying you for your hard work.