Do Staffing Agencies Pay Overtime?
Is a staffing agency denying you of your hard-earned overtime pay? Contact The Hedgpeth Law Firm, PC today and we will fight to get you the compensation you deserve.
Staffing firms and their clients must comply with the federal Fair Labor Standards Act (FLSA). The FLSA allows employees who work over 40 hours in a workweek to get compensated for the extra hours they spend at workplaces.
Employees are supposed to get paid at a rate of 1.5 times their regular pay rate. However, not all classes of employees qualify for overtime pay. If the FLSA does not cover a worker, he or she is known as an exempt employee.
A staffing agency that does not pay their employees overtime rates or incorrectly classifies them as exempt employees may violate the FLSA guidelines.
Determining Liability for Overtime Pay
The purpose of staffing firms is to recruit workers on behalf of employers searching for suitable candidates for their organizations. However, the recruiting agency and client are typically regarded as joint employers. If a worker is legally eligible for overtime benefits, but the employer refuses to pay, the employee can sue either party or both.
When determining liability, the court will usually consider the employer that:
- Has the power to hire and fire employees
- Manages employment taxes and payroll
- Determines the rate and payment method
- Supervises and controls the work schedules of employees
- Maintains the records of employees
Exempt Employees
Please keep in mind this is not an exhaustive list of employees exempted from receiving overtime benefits.
- Employees who carry out executive and administrative tasks earn at least $455 per week as salary
- Professionals who earn a salary of at least $455 weekly
- A salesperson who works away from their employer's business premises
- Skilled workers in the computer field who get paid $27.63 hourly or $455 weekly
- Certain airline employees
- Certain airline employees
- Volunteers
- Seasonal workers
- Domestic workers
- Farmworkers
- Some maritime workers
- Taxi drivers and newspaper delivery employees
For a free legal consultation with Travis Hedgpeth, call (281) 572-0727.
Protecting Your Overtime Pay Rights as an Employee
Many staffing firms in the U.S might have you work more than 40 hours in a week but fail to pay the overtime costs, even though you are legally entitled to be paid. We would recommend that you follow the tips below if you want to protect yourself against agencies and employers that do not have your best interest at heart.
1. Ensure the agency acts in accordance with the FLSA rules and regulations. It is imperative to have them explain how they administer the overtime pay requirement for the temporary, contract, and permanent staff.
2. Ensure the contract with the staffing firm details their responsibility to follow the FLSA pay standards. There should be a clause clearly stating that it is the agency’s exclusive role to manage the payroll related statutory requirements, including FLSA obligations.
3. Be sure the agency specifies the rate of regular pay and overtime pay in your contract or written pricing agreement.
Have Questions? Talk To An Overtime Lawyer
Overtime laws are very complex. If you’re unsure whether you qualify for overtime pay or your staffing agency has been paying less than the legal rates, you may want to speak to an experienced overtime lawyer. Contact experienced overtime lawyer, Travis Hedgpeth, at (281) 572-0727 today to schedule a free consultation.
