Overtime Labor Laws

Federal overtime laws, designed to help end the exempt vs. non-exempt debate, have made things worse. To non-exempt and exempt employees, labor laws continue to confuse.

Business Management Daily can help you comply with federal overtime laws. Learn when you have to pay overtime, and when you don’t.

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A record number of federal wage-and-hour lawsuits were filed in FY12. The most common cases reaching the courts these days concern employee misclassification, off-the-clock work and miscalculation of overtime pay.
The U.S. Supreme Court in June ruled that pharmaceutical sales representatives are indeed outside salespeople under the terms of the Fair Labor Standards Act in a case that could have far-reaching effects on other wage-and-hour issues.
“Nopalera” is Spanish for a “patch of prickly cactus.” That’s exactly where the owners of a Gainesville restaurant called La Nopalera found themselves after the DOL discovered they weren’t paying wages to Hispanic employees, making them work for tips alone.
When the U.S. Department of Labor filed a complaint on behalf of misclassified workers at Skokie Maid and Cleaning Services, the company failed to file a response of any kind. Now it’s on the hook for more than a half-million dollars following a default judgment for the workers.
Q. Some of our employees receive tips from cus­­tomers. Do we need to include those tips when we calculate these employees’ rate of pay for purposes of paying them overtime?
Five Rockingham firefighters are suing the city, claiming it violated the FLSA when it instituted a new system for calculating overtime in 2010. The change occurred following a lawsuit filed by 10 firefighters in 2009. The city claims the current system is the one firefighters sought in their 2009 suit.

Q. Are employers required to pay for overtime hours that result when an employee voluntarily switches shifts with a co-worker?

The U.S. Supreme Court has ruled that pharmaceutical sales representatives qualify as exempt outside salespeople under the FLSA, even though they technically can’t and don’t sell anything. While this case directly affects drug companies, it could have a wider impact.
Q: A client has two stores that are separate franchises. Both stores share employees, including the store manager. How can we calculate overtime when an employee works at both stores, and how do we allocate those hours between the stores?
The most common and costliest wage-and-hour mistakes made by employers involve failure to correctly adhere to overtime pay requirements under the FLSA.  Among the common mistakes: paying time-and-a-half for weekends and holidays; calculating overtime on a pay period basis instead of the workweek; and failure to pay overtime when employees weren't authorized to work the additional hours.