Overtime Pay and Minimum Wage Theft Is Wrong, So Our Ohio Wage And Hour Lawyers Fight To Make Things Right
Companies cut corners and take advantage of any opportunity to help their bottom line, even denying their employees a fair living wage. Low wage workers are hit the hardest, especially where large employers deprive susceptible employees of the information necessary to protect their rights. According to Professional Liability Underwriting Society, “federal wage and hour lawsuits filed nationally have increased more than 400% since 2000.” Our Ohio wage and hour lawyers are proud to be a part of that statistic, as we help cheated employees just like you get the compensation they deserve each and every day.
Unpaid Wages for Employees Lead to Wage and Hour Lawsuits
The attorneys at Tittle & Perlmuter have helped employees in Ohio and nationwide recover fair wages owed to them by wrongdoing employers. We pursue claims under laws such as the Fair Labor Standards Act (FLSA), the Ohio Constitution, and Ohio’s Minimum Fair Wage Standards Act for unpaid overtime and minimum wages, both in individual cases and through class or collective actions. These laws cover such issues as:
- Misclassification of employees as independent contractors
- Misclassification of employees as exempt from overtime pay
- Improper calculation or payment of regular and overtime wage rates
- Improper deductions from salary
- “Off the clock” work requirements
- Improper deduction regarding meal or break periods
- Failure to pay for work travel time
- Failure to provide required breaks
- Not paying wages in a timely fashion
- Improper credit, deductions, or overtime pay for tipped or commissioned employees
Wage and hour collective and class actions can become quite significant in terms of number of affected employees, and often involve some of the largest employers. Recent cases include:
FedEx paid $228 million to settle a claim that drivers filed against the company. The drivers were found to be misclassified as independent contractors when they actually qualified as employees.
Publix paid $30 million to settle a claim brought by managers and assistant managers claiming they were owed overtime.
Minimum Wage Violations
Ohio’s Minimum Wage laws mandate that employees working over 40 hours within a seven-day period are entitled to an overtime premium of one and one-half the employee’s regular wage rate for the extra hours. In most cases, Ohio employees must be paid at least semi-monthly, and pay for a given pay period cannot lag more than two weeks beyond when it is earned.
Additionally, while the federal minimum wage is only $7.25 and $2.13 for tipped employees, the minimum wage for Ohio employees is $8.30, or $4.15 for tipped employees. Ohio and federal law require employees be paid at least minimum wage for each hour worked in each pay period. When an employer infringes on your rights to be paid the amount you earned and on time, they are violating the law.
Misclassification of workers is a very common violation of worker’s wage and hour rights. Employers misclassify their employees as independent contractors to save on employment taxes and the cost of benefits. This happens at all kinds of firms, from retail, to technology businesses, to professional services, to food service, to car dealerships –worker misclassification affects thousands of employees misclassified as contractors. Thus, when a worker is misclassified they can lose out on money directly – through unpaid working time, or less directly – through lack of benefits and higher tax responsibility. An individual’s status as an employee versus independent contractor turns on factors such as:
- The presence of a set work schedule and a specific work location set by the employer;
- The employer’s ability to control the work;
- The right of the worker to accept or decline work assignments;
- Whether the worker is paid an hourly wage or per assignment;
- Whether the tools and machines used for work are provided by the employer or the worker;
- The permanency of the work relationship;
- Whether the worker works for one or multiple employers;
- The degree of skill required of the work; and
- Whether the worker’s job is an integral part of the employer’s business.
Employers often require employees to work without any payment. Time spent at the beginning and end of a shift doing work must be paid, usually even when the activity is preliminary or postliminary to an employee’s usual job duties. Simply put, you are entitled to compensation for any and all hours you worked. It is usually a violation of federal and state wage and hour law if you are asked to “work off-the-clock,” or stay late to finish a task without being paid.
A Message from Scott Perlmuter
Caption: Hey everybody, Scott Perlmuter here, responding to one of the questions we get most often about wage and hour issues. Can my boss make me work off the clock? Not surprisingly, the answer to this question in almost every case is no. You should not be working off the clock. Now, one of two contexts this comes up that people get a little confused about. One, if you aren’t clocking in and clocking out on the job. Some employers don’t make their employees clock in and out at the job, but if you’re an hourly employee (and even in some cases for salaried employees), you should be clocking in and out. Your employer should be having you do that. They’re required to do it by law. They’re required to keep track of those hours to maintain them. The other context that it comes up is salaried employees. Salaried employees may still have to, their hours may still have to be kept by their employers. So, if you’re one of those two categories, that may be something that’s a little bit confusing to you, but you should never be working off the clock. If you are, you should be calling a lawyer. If you ever have any questions about some situation at your job, being required to work off the clock or otherwise, call us at 216-308-1522. Or go to our website, tittlelawfirm.com.
Wage & Hour Violations Against Commissioned Employees
A variety of sales jobs are paid primarily through commissions. Commissioned-based pay arrangements are frequently the cause of minimum wage and overtime pay problems. Employers may only pay commissions to employees when a sale is made, which can result in employees not receiving minimum wages for each pay period.
The employer may fail to pay the overtime premium of “time-and-a-half” to commissioned employees, which is only permitted where (1) the employer is a retail or service establishment, (2) the employee’s regular rate of pay is one and one-half times the minimum wage for every hour worked in a workweek, and (3) more than half the employee’s total earnings in a representative period consist of commissions. All too often, we see careless or greedy employers which have implement policies of refusing to pay commissioned employees overtime. Such policies frequently run afoul of these strict rules, entitling affected employees to compensation.
Are Commissioned Employees Entitled to Minimum Wage & Overtime Pay?
Caption: Hey everybody! Scott Perlmuter here, Wage & Hour lawyer from Tittle & Perlmuter, here to talk to you today about minimum wage and overtime laws and how they apply to commissioned employees. When I say commissioned employees, I’m really talking about sales employees who are compensated either entirely or partially by commissions. I am not talking about tipped employees, like waiters and waitresses. That’s for another video, so you get to see my smiling face again for that.
So, generally speaking, commissioned employees are entitled to minimum wage for all hours that they work during each pay period. So that means for each hour that you worked during a two-week pay period or whatever your particular pay period is, you’re entitled to that number of hours that you worked during that pay period times your state’s minimum wage. Which in Ohio, we’ve got our minimum wage up to $8.30. There are some exceptions to that rule, but they are too rare and too complex to discuss in a short video here. So, if you have questions about that just give me a call.
As for overtime pay, that really depends on your industry and how you’re paid. Some commissioned employees like car salesmen pretty much across the board do not get overtime pay – do not get one-and-a-half times the regular rate of pay. For most commissioned employees, it depends on how much you’re paid and how you’re paid. So for many commissioned employees, for them not to receive overtime, over 50% of their pay has to come from commissions as opposed to hourly or salary pay. And, each pay period your commission plus hourly and salary has to equal at least one-and-a-half times your state’s minimum wage. Again, in Ohio our minimum wage is $8.30. So each pay period your pay would have to be at least $12.45 times the number of hours you’ve worked. So if you have any questions about any kind of pay issues and you’re a commissioned sales employee, give me a call and we’ll work through it.
Improper Deductions from Salary or Refusal of Overtime Pay for Salaried Employees
Many employers believe that they can work their employees to death without extra pay by simply placing the employee on a salary. Fortunately for these overworked folks, salaried employees are protected under federal and state wage and hour law. For instance, while various overtime exemptions are available to employers by paying employees with a salary, salaried employees are often still entitled to overtime pay. If you have a question as to whether your employer is permitted to refuse to pay you overtime by paying you a salary, contact the fair pay and overtime lawyers at Tittle & Perlmuter.
Caption: Scott Perlmuter here to talk to you today about overtime pay for salaried employees. First off, I think most of us have heard there term time and a half, and that means that in Ohio for employees that work over 40 hours in a week that are entitled to overtime, they get one-and-a-half times the regular rate of pay. So, if your regular rate is $10 per hour, if you work over 40 hours in a work week, you get $15 per hour for those hours worked over 40. There’s a common misconception among employees that get paid salaries, that they are never entitled to overtime pay of time-and-a-half for hours worked over 40 in a work week. Because of that, there’s a common practice among employers to not pay any of their salaried employees across the board overtime pay, of time-and-a-half of hours worked over 40.
Now, I’m going to give you a quick primer on salary exemption from overtime, but I can’t explain everything here. But there are two really important rules to know to determine whether or not you’re exempt from overtime pay as a salaried employee. First, do you receive at least $455 per work week? In order for an employer to not pay their employees overtime for hours worked over 40 in a work week, they have to have paid their employees $455 per work week. So, if there are deductions, if there are work weeks where you have been sick, where you’ve not had enough work, you’ve been sent home early for one reason or another, and for that reason the employer is paying you less than $455 per week; or if just your regular pay is $400 per week, you would then be potentially entitled to overtime pay.
Secondly, if you are not an administrative, executive, professional, or computer employee that $455 per week salary exemption would never apply. So, even if you’re paid over $455 per week, you still would be entitled to overtime hours for hours worked over 40. Now, what types of employees fall into those administrative, executive, computer, or professional groups? You’re probably gonna have to call me and find out, because it’s a complicated question.
So, to recap, there are two rules that I want you to remember. Number one: $455 per week. Pretty much no exceptions to that. Can’t really take deductions unless it’s part of bonafide plan with the employer (complicated and we’d have to discuss). Number two: You have to be an administrative, professional, computer, or executive employee for that $455 rule to even apply. If you’ve got any questions, the best thing that you can do, you can contact the Department of Labor, which has regional offices throughout the country. Or you can contact an attorney, talk through your situation, figure out if there are problems in the way your employer is paying you.
Salaried employees are outright exempt from overtime pay if they (1) are paid at least $455 per week, and (2) are executive, administrative, professional, outside sales, and/or computer sales employees. If both of these factors are not met, the affected employee is entitled to compensation for hours worked over 40 in a workweek.
This salary-basis exemption is often abused by employers in one of two contexts. First, the employer may dock the employee’s salary for reasons like lack of work or dissatisfaction with the work product. If the employee is ready, willing and able to work, deductions may not be made for time when work is not available. A salary also may not be docked for perceived poor work product unless as a penalty imposed in good faith for infractions of safety rules of major significance. If improper deductions are taken from a salaried employee’s pay, the employer may lose the benefit of the exemption, entitling affected employees to compensation.
The second context in which this arises is through the misclassification of employees as exempt executive, administrative, professional, outside sales, and/or computer sales employees. Each of job types are legal terms of art, meaning that only those employees which fall strictly under the definition of one of these exempt groups can be denied overtime pay.
Class Action Lawsuits For Multiple Victims Of Wage & Hour Violations
In many instances, when an employer violates minimum wage and overtime pay laws, it does so to most or all of its employees. A class action lawsuit can be brought when multiple employees experience similar pay violations and bring the case as a single court case.
The Automatic Data Processing (ADP) Research Institute reviewed court data and reported that “90 percent of all state and federal court employment law class actions filed in the U.S. were wage and hour claims.” The data also suggests that more than 70 percent of employers are not fully complying to FLSA regulations.
Contact Tittle & Perlmuter for a Free Wage & Hour Case Evaluation Today
We are here to ensure that you receive the wages and benefits that you have earned. Call 216-285-9991 now or fill out our online contact form. We will respond promptly. We can arrange evening and weekend appointments, and we can come to you.
DO NOT WAIT to act! We know you might be scared and confused about what to do if you’ve been wronged by your employer. From the very first moment you pick up the phone and call us, our Ohio wage and hour lawyers will guide you through the process and take care of everything needed to file your lawsuit and do everything in our power to help you get the maximum compensation you are entitled to. There is NO FEE until we WIN so let us learn about your situation and help you understand your best options when you call us now!