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About the Fair Labor Standards Act (FLSA)

Posted in on August 25, 2016

 

Bachus & Schanker, LLC Committed to Fair Employee Compensation

Employees and employers alike are often confused by the Fair Labor Standards Act (FLSA), and specifically who is eligible for overtime pay. The attorneys at Bachus & Schanker, LLC are committed to protecting employees’ right to receive the wages and overtime pay they are due.

Some employers are under the misconception that employees are automatically exempt (or ineligible) for overtime pay if they hold salaried positions. Whether or not employees are eligible to receive overtime pay depends not only on whether or not they are paid a set salary but also on the actual duties the employee performs.

Typically, only a narrow group of white collar employees compensated by salary are ineligible, or exempt, from earning overtime pay. The real test comes when one considers the duties workers performed. Broadly, exempt positions includes those that fall under the following categories:

  • Administrative
  • Executive/supervisory
  • Outside Sales
  • Commissioned Sales – some businesses only
  • Professional

Each of these categories includes its own unique definitions and requirements relating to exemption from overtime. For example, according to the state Wage Order an exempt executive or supervisory employee’s job must meet this description:

“A salaried employee earning in excess of the equivalent of the minimum wage for all hours worked in a workweek. Said employee must supervise the work of at least two full-time employees and have the authority to hire and fire, or to effectively recommend such action. The executive or supervisor must spend a minimum of 50 percent of the workweek in duties directly related to supervision.”

Beyond meeting the “duties test,” an employee’s position may be found not to meet the standard for exempt status if the salaried employee is required to work a set minimum number of hours or have their pay reduced, a signal that the position is, in reality, an hourly one.

Many employers misunderstand the law and, as a result, miscalculate the overtime pay owed their employees.

If you feel you may not be receiving the overtime pay for which you are eligible or you simply have questions about how your employer is classifying your position, contact Bachus & Schanker, LLC for help in clarifying and claiming any wages that may rightfully be yours.

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