Wage and overtime violations increase as employers ask more from employees
The Fair Labor Standards Act requires that hourly workers receive overtime, if they work more than 40 hours per week; however, salaried employees are exempt. Misclassification often results in workers not receiving rightful overtime pay.
March 26, 2013
Wage and overtime violations increase as employers ask more from employeesArticle provided by Jared Jacobson Law, LLC
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Over the last several years, the number of unpaid overtime claims has greatly increased. According the U.S. Department of Labor, the number of wage and overtime violations alleged in lawsuits increased more than 15 percent between 2010 and 2011. Between March 2011 and 2012, there were more than 7,000 FLSA suits filed in federal court.
In 1938, the Fair Labor Standards Act (FLSA) went into effect protecting workers from substandard wages and dangerous working conditions. The law requires that hourly workers must receive overtime, if they work more than 40 hours per week. Salaried employees are exempt.
Most employers understand the basics of the FLSA, but they may not recognize that a professional degree does not always mean an employee is "exempt." In general, executive, professional and outside sales workers are exempt. But if a worker's duties do not include "the exercise of discretion and independent judgment with respect to matters of significance" he or she is more likely "non-exempt" or hourly.
Recent Pennsylvania case underscores the concerns
A common theme in the lawsuits is the misclassification of employees as "exempt" or salaried. This effectively robs the worker of overtime wages.
In a Pennsylvania collective action case scheduled for trial in April, almost 500 bank workers allege that their employer failed to pay them appropriate overtime. At issue in the case is whether the assistant bank managers were classified correctly.
The bank's argument is that the workers had managerial functions; however, the employees had many of the same duties as lower-level employees. If the bulk of the position was simply customer service and opening new accounts rather than management decisions, they might be more akin to hourly workers.
If these employees were misclassified, they would be able to seek two years of unpaid overtime wages under the FLSA. This Pennsylvania case is unusual, because most wage and hour disputes settle behind closed doors long before they reach the courtroom.
Other common violations
In another Pennsylvania case, hourly bank workers claim that their employer did not allow them to record overtime hours. In many cases, a tally of unpaid breaks or off-the-clock work will push an hourly worker into overtime. Some employers may fail or forget to pay the additional one and a half time for overtime hours. Paying a straight wage or miscalculating the correct number of overtime hours are violations.
While on an individual scale, these claims may seem minor, when compounded over time though the wage loss adds up. The effect of these violations also multiply when encouraged across a department. Overtime violation lawsuits often are collective action brought on behalf of many similarly situated employees.
When you notice wage discrepancies or find your employer fails to pay you for all hours worked, there are available remedies through the FLSA. Contact an experienced employment attorney to discuss your individual circumstances. An attorney can assist you in seeking back pay for any unpaid overtime.