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Category: Overtime Law

Federal Judge Blocks New Overtime Rule

By 23/11/2016 Posted in FLSA, Overtime, Overtime Law, Overtime and Unpaid Wages

In a major (and surprise) ruling, a federal judge in Texas has issued a preliminary injunction blocking the Department of Labor’s new overtime rule scheduled to go into effect on December 1, 2016. The new rule would have increased the minimum annual salary requirements for exempt employees will from $455 per week to $913 per week (or from $23,666-$47,476 per year).  Importantly, although 21 states participated in the lawsuit, US District Judge Amos L. Mazzant rejected a request by the Department of Labor to limit the injunction to the states that filed the lawsuit and instead issued an order blocking the new rule nationwide. WHAT DOES THIS MEAN FOR EMPLOYERS AND WORKERS? For now, employers who rely upon the “white collar exemptions,” referred to as the executive, administrative, and professional exemptions, will be permitted to continue paying the minimum salary requirement of $455 per week.  In order to classify an employee as salaried “exempt,” the employer must satisfy both the salary requirements and the “duties” requirements of the exemptions.  Most overtime claims and overtime liability arise out of an employer’s failure to satisfy the duties requirements for the exemption. For example, the “executive” exemption Employers rely on (sometimes referred to as the “managerial” exemption) requires the employer to demonstrate that the employee’s “primary duty” must be the management of a department or division of the company AND that the employee regularly directs the work of two or more full-time employees (or full-time equivalents) AND that the employee must have the authority […]

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FLSA

By 04/06/2015 Posted in FLSA, Labor Law, Overtime Law, Overtime and Unpaid Wages

About the Fair Labor Standards Act Wage and Hour Laws The Fair Labor Standards Act was enacted more than 75 years ago to establish workplace hours, wages and child labor standards in the United States. The FLSA sets the federal minimum wage, which is updated periodically by legislative action, and determines what is considered compensable hours of work. In addition, the statute contains a variety of exceptions to minimum wage, overtime pay rights and the hours that constitute a workweek. Minimum Wage and Overtime Pay The federal minimum wage is currently $7.25 per hour. Florida’s minimum wage is $8.05, which prevails because it is more than the federal amount. Businesses are permitted to pay their tipped employees $5.03 per hour and take a tip credit of $3.02. In most circumstances, employees are subject to a 40-hour workweek. Businesses must pay employees at a rate of time plus time and one-half for hours worked over 40 in a workweek. Businesses are not required to pay extra for holidays or weekends unless the employee is working overtime on those days. Exceptions exist for certain types of occupations, such as first responders, military servicemembers, nurses, construction workers, technicians and certain blue-collar workers. In addition, executives, professionals, administrators, computer-related occupations and outside sales representatives are not subject to the overtime requirements. For this reason, correct classification is crucial. Compensable Hours Determining which hours are considered work is not always straightforward. The FLSA provides some guidance, but a business must also adhere to its own […]

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How Employers Avoid Paying Overtime

By 24/03/2014 Posted in News, Overtime Law

Employers Often Improperly Label Employees as “Managers” to Avoid Paying Overtime Employers often classify employees as “Managers” or “Supervisors” with the thought that simply by applying these titles to an employee they can wash their hands of any obligation to pay overtime pay for hours worked over 40 in a given week and cheat their workers out of wages to which they are entitled. As an employee you should be armed with the facts as to what is required under the existing overtime laws to be considered a “Manager” who is exempt from overtime pay. The Fair Labor Standards Act (“FLSA”) uses several tests to define the “Managerial Exemption” in order to tell if an employee is truly considered a Manager under the law, or are misclassified and is entitled to overtime pay. To determine if you are truly a Manager who is exempt from receiving overtime pay, ask yourself the following questions: Do I earn a salary greater than $455 per work week? Is my primary job duty to manage other employees for the entire company, or to manage employees within a department or subdivision of the company? Do I regularly direct the work of 2 or more people? Do I have the authority to hire or fire other employees , or are my recommendations to hire and fire employees taken into consideration by those that make such decisions?   If you have the title of “Manager” and your answer to one or more of the above questions is […]

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