Overtime Facts – Am I Getting Paid Fairly?
Both employers and employees have a severe lack of knowledge in the area of overtime hours and proper rate of pay.
Under the federal Fair Labor Standards Act (FLSA) employers are required to pay their nonexempt employees an overtime rate of 1.5 times their regular rate of pay for hours worked over 40 in a work week.
Proper Rate of Overtime Pay
An example of nonexempt employees receiving the proper overtime rate of pay could be:
- Regular rate of pay = $10/hour
- Total hours worked in a single work week = 50 hours
- Overtime hours = 10 hours (number of hours over 40)
- Overtime pay = $150 (10 overtime hours x $15/hour overtime pay)
- Total weekly pay = $550 ($400 regular hours + $150 overtime hours)
Although this could be an example of an employee receiving proper rate of pay on their overtime hours, there are several factors that could influence the base bay of an employee. Things such as sales bonuses, commissions, travel bonuses, etc. could mean that your base pay ($10 in the above example) would be higher after any extra pay is factored in.
Overtime Facts from Attorney Scott Perlmuter
Transcript: Hey everybody, Scott Perlmuter here to give you your daily dose of overtime law knowledge. This is an issue that may be depriving you of overtime pay that you’re entitled to. It’s something that both employers and employees have a lack of knowledge about, we find in so many of our cases, and that is- determining the proper rate of pay for your overtime rate. So, let’s say you get paid $10/hour. You probably think, for time over 40 hours in a week, I get time and a half- that means $15/hour. Some cases you may be right, some cases, many cases, you may be wrong. If you’re paid an overly rate but you get extra pay for things at work- so let’s say you get a travel bonus, let’s say you get a driving bonus, let’s say you get a shift differential, let’s say you get sales bonuses, commissions, those are all additional pay that have to be added back into your base rate before your overtime rate is calculated. So, whereas you may make $10/hour for your regular, hourly rate, those additional amounts have to be added back in that would cause your $15/hour pay for hours over 40 to be increased based on those numbers. The calculations can be really complex, so basically if you have a question about this, give me a call. We’ll go through your pay, we’ll go through your hours worked, and we’ll figure out what is the proper hourly rate and have you been shorted over time. So, if you have questions, one thing you could do is visit our website which has a ton of good information on this. We have a website devoted just to overtime and minimum wage laws, and that is overtimelawyersohio.com. You can visit our main website, tittlelawfim.com, that’s got also some helpful information about wage and hour laws, or you can give me a call at 216-308-1522. Scott Perlmuter, I’m happy to talk to you anytime about your minimum wage and overtime questions. Thanks!
Contact a Reliable Wage and Hour Attorney
Overtime and proper rate of pay are complex subjects. Many employers are not knowledgable about the topic, causing them to underpay employees and refuse compensation for wages earned.
Feel free to also visit our website specifically dedicated to wage and hour violations by visitingwww.overtimelawyersohio.com.