Between the internet and Law and Order-type television shows, there is no shortage of myths and misconceptions when it comes to the law. However, as an employment attorney, there is one that I hear over and over again and it causes a ton of headaches (and costs a ton of money), especially for small employers. It has to do with employee pay. The typical conversation goes something like this:
Client: Benton, I have an employee who is complaining about working too much and getting paid too little.
Me: OK, tell me a little about this employee.
Client: He’s my assistant. His job is pretty much to do what I tell him, when I tell him.
Me: How many hours a week is he working?
Client: It varies, but anywhere from 35 to 60.
Me: Do you pay him overtime?
Client: No, I don’t need to pay him overtime. He’s on salary.
This is the point in the conversation when I get out of my chair and ring the giant gong in my office. Many employers believe that paying an employee a salary automatically means that the employee does not need to be paid overtime. That is SIMPLY NOT TRUE!
The federal Fair Labor Standards Act (FLSA), among other things, establishes a default rule that employees who work more than 40 hours in a given week must be paid an overtime premium of 1.5 times their regular hourly rate for all hours worked over 40 in a given week. Some classifications of employees, however, are exempt from the FLSA’s overtime provisions. Payment on a salary basis is indeed one of the several criteria that must be met in order for an employee to be classified as exempt, but payment on a salary basis, standing alone, is most definitely not enough to make an employee exempt. Some of the most common exempt classifications are: executives; professionals; administrative employees, and outside sales. For employees to qualify under these classifications, they must meet each of the following criteria, of which salary is but one.
Executive Exemption:
Passenger Rail Study Offers New Details About Proposed Wilmington To Raleigh Route
Emma Dill
-
Apr 22, 2024
|
|
Severe Weather Postpones Trump Rally In Wilmington
Emma Dill
-
Apr 20, 2024
|
|
Will NC Be CNBC's Three-time Top State For Business?
Audrey Elsberry
-
Apr 22, 2024
|
With millions in committed funding from New Hanover County and the New Hanover Community Endowment, along with a land donation from the city...
Michelle Penczak, who lives in Pender County, built her own solution with Squared Away, her company that now employs over 400 virtual assist...
Baristas are incorporating craft cocktail techniques into show-stopping coffee drinks, and bartenders are mixing espresso and coffee liqueur...
The 2024 WilmingtonBiz: Book on Business is an annual publication showcasing the Wilmington region as a center of business.