Often times, employers misconceive the requirements of paying overtime and will neglect to pay salaried employees their deserved overtime pay. While most salaried employees are exempt from overtime, there are situations in which a salaried employee is eligible for overtime pay.
In the event that you are an employee who is entitled to overtime pay, your overtime rate will be dependent on certain factors. Typically the number of hours you work, or are scheduled to work, and if the number of hours you will work will vary, will all determine the rate of overtime pay you are entitled to. There are two different categories that this will fall into:
Fixed Hours- If your are a salaried employee and your hours are based on a fixed number of work hours each week, your regular rate of pay must be calculated by taking your salary and divide them by the fixed number of hours you will work. In the event that you are to work more than the fixed number of hours, you must be paid time and a half of your regular rate of pay.
Varying Hours- If you are a salaried employee, but your hours are varying each week, then you are only entitled to receive overtime pay, which is half-time, in the event that you work more than 40 hours in a week. This method of paying overtime to these salaried employees is often referred to as the “Fluctuating Workweek”. According to the Department of Labor, in order for this to be an effective method of paying overtime, there must be an understanding, as well as an agreement, between the employee and the employer. Some states have overtime laws that make the “Fluctuating Workweek” illegal and require that the salaried employees should be paid the typical time and a half rate.
Maduff & Maduff has been specializing in employment and civil rights law for more than 20 years. If you feel that you have been a victim of overtime or wage theft, contact our employment attorneys immediately.