Overtime Pay Issues and Avoiding Fair Labor Standards Act Litigation

 Posted on January 30, 2019 in Wage Law

The Fair Labor Standards Act (FLSA) is a federal law put in place in 1939 to protect the rights and well-being of American workers. While the act has changed since its inception 80 years ago, it still retains many of its original goals, such as the minimum wage, overtime pay requirements, record keeping, and child labor standards. The FLSA is an important part of the American workforce and protects the rights of most workers.

Are Employers Required to Pay Overtime?

According to the FLSA, if an employer permits or requires an employee to work overtime, that employer must pay the employee for those overtime hours. Overtime is defined as any hours worked after 40 hours in a single workweek. The FLSA also requires overtime pay be no less than the employee’s usual rate plus half.

For example, a retail worker normally makes $12 per hour. This week, they worked a total of 48 hours, meaning they have eight hours of overtime they must be compensated for. Their overtime rate would be $12 + $6, for a grand total of $18 for every hour worked over 40 hours in a week. This means the worker should receive a paycheck of $720, $576 for the first 40 hours worked, and $144 for the eight hours of overtime.

Exemptions from Overtime Pay

Though many employees are covered under these rules, not all employees are. According to the FLSA, the following are exempted from being required to receive overtime pay:

• Executive, administrative, and professional employees;
• Outside sales employees;
• Employees in certain computer-related occupations;
• Employees of certain seasonal amusement or recreational employers;
• Fishermen and farm workers;
• Newspaper delivery employees;
• Certain commissioned employees;
• Employees of certain transportation occupations;
• Theater workers;
• Domestic service employees living in their employer’s residence; and
• Certain employees of non-metropolitan broadcasting stations.

Contact a Schaumburg, IL Employment Attorney

Though many employees are covered under overtime regulations, they do not apply to everyone. If you face an employee dispute related to overtime pay, contact an Illinois overtime pay dispute lawyer. At the Miller Law Firm, P.C., we can help you determine if your employee is exempt from overtime pay and assist with FLSA litigation. Call our office today at 847-995-1205 to schedule a free consultation.

Sources:

https://www.dol.gov/whd/regs/compliance/hrg.htm

https://www.dol.gov/whd/regs/compliance/whdfs23.pdf