Overtime pay can substantially increase someone’s paycheck. If a worker has to put in more than 40 hours in a work week, they may receive 150% of their average hourly wage for their extra hours. Although many workers would love to put in overtime work, many employers will do their best to avoid paying overtime wages.
Whether or not an employee receives overtime wages depends on a couple of factors. Several kinds of workers are exempt from overtime pay. Those who are technically independent contractors and not employees will usually not receive overtime pay. Additionally, most people know that workers paid on a salary basis are frequently exempt from overtime rules as well.
However, not every worker who has a salary pay arrangement with their employer is exempt from overtime pay. In fact, quite a few workers may still qualify for overtime pay despite receiving the same wages every week. The overall income of a salaried worker determines whether or not they are exempt, not simply the salary pay arrangements.
Lower salaries may lead to overtime pay
Companies could very easily abuse overtime pay exemptions if regular pay on a salary basis was the only requirement to eliminate overtime wage obligations. For a salary to eliminate overtime pay, it must exceed a specific federal threshold.
As of the last adjustment to overtime rules, which occurred in 2019, a worker should receive at least $684 per week or $35,568 annually for an employer to classify them as exempt from overtime wages. Those who receive lower salaries should still receive overtime pay.
Workers may have thousands in unpaid overtime
The longer someone has worked for a company without overtime pay, the more of a surprise it can be to learn that they aren’t exempt from overtime wages. In some cases, workers may have thousands of dollars in unpaid wages due because of overtime violations by their employer.
Sometimes, companies will pay a worker what they should when made aware of a previous mistake. Other times, workers will have to take their employer to court if they want to receive those unpaid overtime wages. Learning more about the basis for many wage claims can help employees explore whether they may have grounds to take legal action based on their pay history.