One of the most common employment issues today is overtime exemption. Many employees choose to work overtime in order for them to earn more money. Unfortunately, under the Fair Labor and Standards Act (FLSA), only a chosen group of employees are allowed to work off hours.
There are a number of reasons that would make employees ineligible for overtime work and pay. Here are some of the factors that distinguish exempt from non-exempt employees:
One reason that makes them ineligible for overtime work is that they usually earn more than most employees. Their jobs often use knowledge of a certain field of study, creativity and sometimes control over other people. These are the types of jobs under exempt employees:
- Executive positions â€“ If an employee is in-charge of making decisions for the company, he has an executive position. Any work that is related to the evaluation of the company's progress and development is an executive type of job.
- Administrative positions â€“ Unlike executive positions that deal with large-scale company matters, administrative jobs, are concerned with the company's performance, production and operation. Administrative officials lead employees to perform their jobs well.
- Highly-educated employees â€“ These employees have high-educational achievements that are related to their field of study. Doctors, lawyers, professors, etc. are some of these jobs.
- Highly-skilled employees â€“ Even without extensive educational attainment, these employees have developed skills that are essential to the company.
- Creative artists â€“ They are employees who are in-charge in creating, developing, applying and incorporating ideas and plans to the goals of the company.
All the jobs that do not fall under the categories given above are mostly non-exempt positions. These types of jobs are often characterized by manual labor. The wages for these jobs are mostly equal to the minimum wage requirement stated by the law. Because they do not earn that much compared to exempt employees, they are allowed by the FLSA to work overtime.
If an employee works more than eight hours a day, or more than 40 hours a week, he is entitled to receive overtime pay. Under federal and state laws, overtime rates are equal to one and a half times the employee's regular rate. Employers are required to pay exact overtime pay to their workers. If they fail or refuse to do this, they might face an overtime pay claim.
Overtime pay claims seek to recover the lost wages of non-exempt employees. If they can prove that their employer was illegally withholding their wages, they can make him pay double of their monetary losses. Given these difficult circumstances, who would want to face legal charges and lose a significant amount of money?