Those Americans who managed to keep their employment throughout the current recession endured a lot of stress. They had a history of working longer hours for less compensation or the same income, and they may have worked extra for little or no pay.
Overtime was frequently underpaid or employees were reclassified as hourly workers. Employees are recognizing their rights and filing more unpaid overtime claims seven years after the recession’s low point in 2008.
In 2014, the Department of Labor recovered nearly $241 million in back wages for employees, up 22 percent from 10 years earlier. The biggest mistake employers made was wrongly labeling employees as exempt from overtime pay.
Many Americans, however, are still ineligible for overtime. Salaried workers must earn less than $23,660 per year to be automatically eligible for overtime compensation under current standards. The Obama administration implemented a new rule this year that changes this criterion.
A Houston unpaid overtime lawyer could help if you suspect an error from your employer.
The Fair Labor Standards Act (FLSA) governs employees who work over 40 hours a week. It’s routinely violated by employers. According to the Department of Labor back in 2008, in excess of 197,000 employees received $140.2 million in minimum wage and overtime back wages because of violations in this legislation.
Failure to pay overtime when employees work more than 40 hours per week, failure to incorporate non-discretionary bonuses when calculating overtime pay, and improper designation of individuals as exempt from overtime when they are not exempt are all examples of violations of the overtime regulations.
Section 13(a)(1) of the FLSA exempts some executive, professional, administrative and outside sales workers from the FLSA’s overtime requirements if they meet certain criteria in relation to their job duties, in which case they can be ineligible for overtime.
Generally to be exempt an employee must fulfil a two-pronged test comprising a salary basis test and a duties test.
The salary test is met if the employee receives a fixed amount of money weekly, bi-weekly or monthly, and there is no deduction based on the quantity or quality of his or her work.
The duties test differs for executive, administrative and professional employees. It is met when the work is done as opposed to job descriptions.
Exempt positions usually fall into five categories.
For full details see this Department of Labor fact sheet on overtime exemptions or reach out to an unpaid overtime lawyer in Houston.
President Barack Obama moved to update labor standards brought in in the Fair Labor Standards Act (FLSA) of 1938 – the legislation that introduced a national minimum wage and time-and-a-half pay for hourly and certain salaried workers after 40 hours of weekly work.
The regulation has increasingly become outdated, covering only 8 percent of the salaried workforce. It means employers can ask white collar workers who make more than $23,660 per year to put in long hours without overtime pay. The president’s proposal takes it up to $50,400, approximately $970 per week.
With more workers eligible for overtime, we expect to see more lawsuits brought against employers who have wrongly denied overtime to their employees. Contact us if you feel you have been denied overtime pay. Our Houston unpaid overtime lawyers are ready to help.
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