Federal and State Overtime Rules – Don’t Get Snagged!
Federal and local law regulates overtime pay and hourly wage minimums of certain classes of employees; other laws require employees paid either twice per month or every two weeks. There are severe penalties for not following these laws. Do you comply? Are you exempt from overtime laws based upon the status of the employee? If you pay employees hourly, the employees must be paid overtime. Even if you have employees on a salary basis, their classification as “managerial” or “overtime-exempt” may not be valid. Federal and state laws which govern the exemptions err on the side of paying overtime. Current federal laws require all employees claimed as exempt to be salaried equivalent of at least $23,600 per year and for more than 50% of their duties to be either executive tasks (managing the duties of multiple employees), administrative tasks (using judgment and discretion over significant matters), or professional tasks (work requiring an advanced degree beyond undergraduate education). Despite nuanced general rules, any litigation surrounding an employee’s status will be intensely fact-based with many factors being considered.
With that in mind, an employer with a category of employee falling into a grey area employee should seek the help of Weiss LLP to ensure there is not a law breach. These penalties are costly and require a terrible misuse of resources to get back on track. Call Weiss LLP for a wage payment review; we undertake these on a gratis basis for clients.