5 Misconceptions About Overtime Pay Under the FLSA
Understanding your rights to your compensation is crucial in today’s job market. For example, misconceptions about overtime pay under the Fair Labor Standards Act (FLSA) can lead to loss of your hard-earned overtime pay. Here, we debunk five myths about overtime pay to ensure you're fully informed:
1. “Salaried Employees Are Always Exempt from Overtime”
Many believe that if they receive a salary instead of an hourly wage, they are not entitled to overtime pay. This is not always the case. The FLSA requires overtime to be paid to all employees, including those on a salary, for hours worked over 40 in a workweek unless a specific exemption (such as professional, administrative, or executive) applies.
2. “Overtime Can Be Waived by Agreement”
Some employers and employees think they can agree to waive overtime rights—either by not counting hours over 40 in a week or agreeing that overtime isn't required. Under the FLSA, these agreements are usually invalid. Employees generally cannot waive their right to overtime pay; it's a federal right that cannot normally be forfeited by agreement.
3. “Only Hours Over 8 Per Day Qualify for Overtime”
A common misunderstanding is that overtime is based on working more than 8 hours in a single day. However, the FLSA requires employers to pay their employees at overtime rates for all hours worked over 40 hours in a workweek. Some states have daily overtime laws, but the 40-hour workweek is the standard for overtime eligibility under federal law. Therefore, in a given week, an employee may be paid at their normal rate of pay for their 40th hour of work but must be paid at an overtime rate for their 41st hour and all additional hours worked after that.
4. “Unauthorized Overtime Won't Be Compensated”
Employers sometimes attempt to withhold overtime pay from their employees, stating that overtime work must be authorized in advance to be paid. However, employees who work overtime are entitled to overtime pay, regardless of whether the overtime was authorized. It is the employer's responsibility to control work schedules, accurately keep track of all hours worked, and enforce policies about working extra hours.
5. “Averaging Hours Over Two Weeks to Determine Overtime”
Another myth is that employers can average an employee’s hours over two or more weeks to determine eligibility for overtime pay. The FLSA requires that overtime be calculated weekly, even if pay periods are not weekly. This means each workweek stands alone, and employers cannot average employee hours across two or more weeks to avoid paying overtime. For example, it is a violation of the FLSA to schedule an employee to work 38 hours one week, 42 hours the next, and then average the two weeks together to arrive at 40 hours in order to avoid paying the 2 hours of overtime.
Empower Yourself with Knowledge
Misconceptions about overtime pay can lead to significant losses for employees. It is unlawful for an employer to fire, suspend, or discipline an employee for asserting their rights under the FLSA. By understanding your rights under the FLSA, you can ensure you are compensated fairly for your hard work. If you suspect your rights are being violated, Martin & Bonnett, PLLC, can help. Our expertise in labor law means we are adept at navigating these issues and securing the pay you deserve.
Reach out to us for advice or to discuss a potential claim. Let’s ensure your employment rights are fully protected.