Five Misconceptions About Overtime Compensation
September 1, 2016
According to the Fair Labor Standards Act of 1938 (FLSA), specific employees who work more than 40 hours per week are entitled to overtime wages. While the law has been in place for almost 80 years, there is still some confusion regarding its protections.
The following are five common misconceptions that persist:
Comp time is an acceptable replacement for overtime– Some employers offer workers comp time, or additional time off, instead of cash that should be paid for overtime hours. According to the FLSA, there is only one acceptable instance that comp time instead of cash is acceptable – when no more than 40 hours have been worked in one week.
Professionals cannot receive overtime– Generally, if employees earn more than $455 per week or occupy positions that the FLSA deems as management, they will not qualify for overtime. However, employers sometimes misclassify workers to ensure workers are exempt from overtime due to a small exception. This form of misclassification is illegal.
Salaried workers are exempt from overtime– Most salary employees do not qualify for overtime since they earn more than $455 per week. However, salaried workers who do not earn this much must receive overtime pay for hours worked in excess of 40 hours.
Averaging overtime over two weeks– Despite an employer’s pay cycle, overtime must be determined during the week it was worked.
Small tasks do not amount to overtime– The FLSA stipulates that any work performed must be compensated for, including hourly or salaried work. This includes breaks and down time on the job. For example, if you arrive to work early or leave late, you should be compensated if your employer is aware of it and allows you to do so.
If you believe you have been denied overtime based on a legal misconception, you could be entitled to lost income. Because you are protected from retaliation by the Fair Labor Standards Act, you do not have to worry about losing your job if you speak up.
Our experienced overtime attorneys are available to help you and will fight for your rights. ContactPhillips Law Group to schedule a case evaluation and find out if you are entitled to file a lawsuit today.
Call 1-800-706-3000 right now to get started. Free consultation by phone. No fees to start your case and no fees unless we win your case.
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