Overtime Compensation – Misclassification of Salaried Employees

Ohio and Federal Unpaid Overtime Attorneys

Fair Labor Standards Act: Unpaid Overtime Wages due to the Misclassification of Salaried Employees

As I previously posted, here, the U.S. Department of Labor’s amended regulations to the Fair Labor Standard Act (“FLSA”) will become effective on December 1, 2016. Under these new regulations, employees across the nation must earn at least $913 per week (or $47,476 annually) in order to qualify for any of the “white collar” (executive, administrative or professional) overtime exemptions. This minimum salary will be adjusted annually to an amount equal to the 40th percentile of weekly earnings for full-time salaried workers.

In order to be properly classified as exempt from overtime under any of the white collar exemptions, an employee must meet two tests. First, the employees must meet the salary basis test. Under this test, the employee must be paid a fixed salary each week that is not subject to reduction based on the quantity or quality of work. Basically, if you are paid on a salaried basis and that amount is less than the new minimum of $913 per week, the employer must either increase the employee’s salary to the new minimum or begin treating that employee as hourly, non-exempt.

Second, the employee must meet a duties test. Under this requirement, the employee’s primary job duties must meet certain minimum requirements depending on the type of exemption. Often times employers have general job duties descriptions for their employees, but they are not the controlling factor. The ultimate test is what the employee primarily performs on a daily basis.

If either of these tests are not met, you may be misclassified and, thus, entitled to unpaid overtime wages in the event you work in excess of 40 hours per week. In light of the new regulations, feel free to contact the attorneys at Bryant Legal, LLC to determine whether you may be entitled to unpaid wages, including overtime compensation.

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