Neither fish nor fowl
Salaried with overtime
Brings pain and regret
We don’t see a lot of wage and hour poetry these days, but if we did, it would probably look a bit like the foregoing example from an anonymous former U.S. Department of Labor official. When it comes to paying office workers who do not qualify for an overtime exemption, businesses often look for ways to treat those workers as much like exempt personnel as possible, including by paying wages in the form of a salary rather than hourly pay. Salaried nonexempt status ordinarily starts with good motives, but it frequently ends with claims for unpaid overtime. In this month’s Time Is Money segment, we explain that although paying overtime-eligible employees on a salary basis is a lawful, available option, it comes with significant risks that an employer must understand and navigate in order to pay these workers correctly.
For more than 80 years, federal law has provided a general right to premium pay for working overtime hours, originally just for covered employees, then later for employees of covered enterprises. The laws of more than 30 states contain a comparable requirement, though in some instances differing in the particulars.
This presumptive right to the overtime premium is, of course, subject to the familiar exemption construct whereby individuals whose employment satisfies one or more of the dozens of exempted categories fall outside the premium pay requirement. Many of the most ...
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Recent Updates
- The U.S. Department of Labor’s Final Rule Increasing the Salary Threshold for EAP Exemptions Took Effect, Except for the State of Texas as an Employer
- Plaintiffs in California Putative Class Action Lose Numerous Challenges to Enforcing Arbitration, Barring Unclean Hands
- California Governor’s PAGA Deal: What Employers Need to Know - Employment Law This Week
- Minimum Wage Increases (and Other Changes) Are Coming on July 1, 2024
- New Jersey Wage Theft Act Does Not Apply Retroactively, Per the State Supreme Court