In the United States, overtime pay is a vital aspect of employment law that affects countless employees across different industries. As an employee, it is crucial that you understand overtime laws. However, misinformation and myths about overtime laws can cause confusion. In this article, we debunk some common myths about overtime pay.
Myth #1: Only Hours Over Eight Per Day Qualify for Overtime
One common myth is that only hours worked over eight in a single day qualify for overtime. This is not true. The Fair Labor Standards Act (FLSA) requires employers to pay qualifying workers overtime for all hours worked over forty in a workweek. This means that regardless of how many hours an employee works in a single day, the total number of hours worked in a workweek is what matters. While some states have daily overtime laws, the 40-hour workweek is the standard for overtime pay eligibility under federal law.
Myth #2: All Salaried Employees Are Exempt From Overtime Pay
Some people believe that if an employee is paid on a salaried basis, that employee is automatically exempt from overtime pay. It is not true that only hourly employees are entitled to be paid for overtime. Salaried employees can be eligible for overtime pay, provided they do not fall under specific exemptions. For example, to be exempt from overtime compensation, salaried employees must meet specific job duty criteria, such as executive, administrative, or professional roles.
Myth #3: Unauthorized Overtime Is Not Compensable
Sometimes, employers withhold overtime from employees who work unauthorized overtime. This is not legal. It is important to note that employees who work overtime, regardless of whether the overtime is authorized or not, are entitled to overtime compensation even if their employer has a policy that states employees are not to work unauthorized overtime. However, an employee who works unauthorized overtime, yet the employer has a policy that no overtime is allowed unless authorized in advance, can face disciplinary action.
Myth #4: Overtime Can Be Waived in Writing
Another common misconception is that employees can waive their right to overtime in writing. Under the FLSA, employees cannot waive their right to overtime pay. Written agreements between employers and employees waiving the employee’s right to overtime compensation are considered invalid by the FLSA.
Myth #5: Employers Can Average an Employee’s Hours Over Two or More Weeks to Determine Overtime Eligibility
Even if pay periods are not weekly, the FLSA mandates that overtime be calculated weekly. This means each week stands alone, and employers are prohibited from averaging employee hours across two or more weeks. For example, if you work 42 hours in one week and 38 hours in another, your employer cannot average the two weeks to arrive at 40 hours.
Myth #6: Overtime Pay is Always Time and a Half
The FLSA does not mandate that employers pay employees overtime at a rate of time and half (1.5 times the regular hourly wage). Instead, the law requires that workers receive at least 1.5 times their regular hourly pay for hours worked over 40 in a workweek. Some employees may offer a different rate as long as it is not less than time and a half.
Contact Us for Legal Help
For more information or if you have been wrongfully denied overtime pay, contact our skilled New Jersey employment lawyer at The Trabosh Law Firm.