Employers frequently miscalculate overtime pay rules governed by the Fair Labor Standards Act (FLSA) as well as employment statutes under various state laws.
Many salaried employees and even those working on a commission don’t realize that their employer is required to pay for overtime under the federal Fair Labor Standards Act (FLSA).
Who must be paid overtime?
Unless a worker is “exempt” from the FLSA overtime wage laws, they must be paid overtime. Nearly every employee who is paid an hourly rate must be paid overtime if they work over 40 hours in a workweek. But even non-exempt workers on a salary or employees that work on a commission are owed overtime wages if they work more than 40 hours in a given workweek.
Common examples of underpayment
For example, if you are an administrative assistant working an average of 50 hours per week and who is paid $20 per hour for all 50 hours, you are due up to $100 per week/$5,200 per year in back overtime pay for the “half time” you were not paid for each hour over 40 (since you were only paid the straight hourly rate of $20 for the overtime hours and not “time and a half”).
Also, once the FLSA’s liquidated damages provision is included, that same administrative assistant’s amount due becomes $200 per week/$10,400 per year – double the amount the employee was shorted. If overtime pay was miscalculated in this manner over several years, the total amount due to the employee would increase dramatically. FLSA allows recovery of back wages and liquidated damages going back two years and even three years in some circumstances.
Are performance-based or commission jobs due overtime pay?
Another area of concern involves performance bonuses and work on commission. If an employee is paid performance-based bonuses or works on a commission, those amounts must be included in his/her base salary in order to properly calculate subsequent overtime wages.
Many times, salaried employees don’t even know they are due compensation for overtime hours under the FLSA. There are provisions in the act that make it illegal for employers to retaliate against an employee. It is important to contact an attorney quickly as time deadlines do apply.
Common employment types
Oil & gas service industry jobs
Maintenance & Repair
Delivery
Cable/Telephone Installers
Oil & Gas Services
Clerical
Sales
Office/Administrative Staff
Nurses
Restaurant workers
Casino workers
