Unpaid Overtime Explained: Clarifying the Key Parts Of Overtime Rule
If your employer is not paying you your proper wages or overtime, contact unpaid overtime lawyer, Travis Hedgpeth, today for a free case evaluation.
A Professional Lawyer Fighting for Your Unpaid Overtime
While there have been several subsequent revisions to the FLSA overtime law, unpaid overtime remains a blurred area. There’s a lot of confusion surrounding the subject, making it difficult for employees to understand their rights.
Almost everyone knows that the federal overtime law requires employers to pay time-and-a-half the worker’s regular rate for all the extra hours worked in a 40-hour workweek.
In other words, an employee receives 50% more than the standard hourly rate. If the worker is earning $20 per hour, then their overtime pay increases to $30.
But who is eligible for time-and-a-half overtime pay?
Overtime eligibility is dependent on the following factors:
· Salary level
· Job duties and responsibilities
· Skills required for the job.
Before we discuss these factors, please note if you’re an employee with fluctuating workweek hours and meet the FLSA Chinese overtime provisions, the legal overtime rate is half-time your standard hourly wages.
Salary Level and Overtime Pay
In 2020, the Department of Labor raised the salary threshold for overtime exemption to $684 per week (equivalent to $35,568 annually). Previously, it was $455 per week or $23,660 annually. An employee may qualify for overtime pay if they get paid less than the salary minimum.
Applying the Duties Test
If you make less than $684 or $35,568 annually, your job duties and responsibilities will come into play. Generally, employees performing administrative and executive functions are not entitled to overtime even if they receive a salary below the minimum threshold.
You cannot file an unpaid overtime lawsuit against your employer if you:
· Earn $684 or more per week
· Perform non-manual work
· Are directly involved in the management or general operations of the company
· Have decision-making authority on matters of significance
Employees with executive job titles are overtime-exempt if they:
· Make at least $684 per week
· Manage a department or regularly supervise at least two other employees
· Have the authority to hire and fire.
Merely giving employees job titles like managers, supervisors, and CEOs isn’t enough to disqualify them from receiving overtime pay.
Assessing Overtime Rights Based On Skills Needed For the Job
Learned professionals are not entitled to receive overtime pay. To be classified as a learned professional, you must have advanced knowledge and specialized training in a specific field that typically requires performing intellectual tasks. Examples of learned professionals include teachers, accountants, lawyers, doctors, and scientists.
Bi-Weekly Pay Periods and Overtime Pay
Employees who get paid bi-weekly are likely to be cheated out of their overtime money because many employers average the weekly hours across the two weeks. The law does not allow this.
Let’s assume you worked 30 hours and 50 hours in the first week and second week. An employer adhering to the FLSA overtime rule will pay the extra 10 hours worked in the second week.
If an employer were to compute overtime based on the average of the two week hours, you would receive nothing as overtime compensation.
How Much Is My Overtime Case Worth?
In case the employer violated your overtime rights unknowingly, you will recover the full amount of your unpaid overtime and reasonable lawyer’s fees. If it was a deliberate violation, your employer also pays liquidated damages, double the unpaid overtime value.
Steps to Take If an Employer Fails To Pay You Overtime
· Confirm you are a non-exempt employee
· Collect as many documents as possible to back up your unpaid overtime claim
· Talk to your HR manager and let them know about the discrepancy
· Consult an overtime lawyer if the HR manager or boss fails to correct the mistake or acts in retaliation