Overtime Law and Minimum Wage Law

Every day, thousands of employers violate the overtime regulations set by the Fair Labor Standards Act (FLSA). Although this federal law requires employers to pay overtime to eligible employees, the Wage and Hour Division continues to collect millions of dollars in back wages every year due to overtime violations. In fact, during the 2008 fiscal year, the agency collected over $57.5 million in back wages for approximately 77,000 workers in low-wage industries.

The Fair Labor Standards Act

The Fair Labor Standards Act (FLSA), which regulates overtime law, states that eligible employees must receive time-and-a-half pay for hours worked over 40 in a single workweek. A workweek, which can begin on any day, is seven consecutive 24-hour periods or 168 consecutive hours. If an eligible employee works more than 40 hours in this time period, he or she should receive overtime pay. To calculate your overtime pay rate (time-and-a-half), simply multiply your hourly rate by 1.5.

The FLSA also states that employees must receive at least the federal minimum wage of $7.25 (effective July 24, 2009). Many states have also set their own minimum wage requirements. In these cases, employees must receive the higher minimum wage. Tipped employees and younger workers are the two exceptions to minimum wage labor law.

The FLSA does not require employers to offer extra pay for night shifts, holidays or weekend work. Providing additional compensation for working these hours is solely up to the discretion of the employer. However, if overtime hours are worked during these shifts, time-and-half must be paid if the employee is non-exempt under overtime law.

Non-exempt and Exempt Employees

According to the Department of Labor, exempt employees, including those in the creative and administrative fields, are not eligible for overtime pay. Non-exempt employees, who do not meet the five exemptions under overtime law, must receive overtime pay for hours worked over 40 in a single workweek. Unfortunately, separating employees into "exempt" and "non-exempt" categories is not always easy. Job titles do not determine overtime exemptions; wages and duties are the biggest factors in determining overtime eligibility.

Determining overtime eligibility can be a daunting task--and not one you should take on by yourself. Don't struggle by searching through endless articles on overtime eligibility. Just fill out our simple case evaluation form and our overtime attorneys will evaluate your claim for free. We will examine your job duties and wages and determine whether your claim is valid. If you are found to be a non-exempt employee, our overtime lawyers will fight to help you receive the back pay you deserve for your employer's overtime violations. Do not hesitate to contact our overtime attorneys today.

State Labor Laws