Overtime Lawsuits on the Rise

July 25, 2012

A recent USA Today report reveals an unexpected consequence of our country's economic woes -- more lawsuits seeking compensation for unpaid overtime. There were 32 percent more unpaid overtime lawsuits filed in 2011 than in the three years prior.

Legal experts deduce that the number of lawsuits has risen sharply due in part to the fact that myriad companies have slashed labor forces in an effort to cut costs. This leaves fewer workers with a higher workload than before, often at a lower wage or without being fairly compensated for extra hours put in on the job. Many of these workers are afraid to complain about the unfair treatment because they fear losing their jobs and -- with a nationwide unemployment rate still hovering around 10 percent -- not being able to find another one.

Improper Employee Classification?

Only non-managerial employees in Pennsylvania are eligible for overtime compensation. The federal Fair Labor Standards Act and the Pennsylvania Minimum Wage Act defines managerial workers as those who are engaged in a bona fide executive or administrative capacity and are "paid on a salaried basis instead of an hourly wage."

Employers may justify cutting wages for their remaining staff by allowing for the possibility of overtime pay for additional hours worked, but oftentimes will classify employees in such a way that they are not eligible for overtime compensation. This leaves the employees overworked, underpaid and more determined than ever before to seek a fair wage for their labors.

Overtime lawsuits are one way that exhausted employees can seek fair compensation for the effort they put in that goes above and beyond what should be expected of them. Sometimes employees are wary of seeking compensation for unpaid overtime, but both federal and state laws provide a legal avenue to do so. If you have questions about overtime compensation that you deserve, speak with a local employment law attorney to learn more about your legal rights and options.

Article provided by McCarthy Weisberg Cummings, P.C.
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