Is it Against the Law to Not Pay Overtime?
The United States Department of Labor administrates the Fair Labor Standards Act (FLSA), which governs federal overtime laws. If the state has overtime laws, the state labor department administrates them. An employer is required to pay overtime, if federal or state law requires it.
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Determination
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Under the FLSA, covered nonexempt employees must receive overtime pay at one and one half times their regular pay rate for work hours exceeding 40 for the workweek. State law may have different requirements. For example, California employers pay overtime for work hours exceeding eight, and double time for hours exceeding 12 for the workday, and overtime for the initial eight hours worked on the seventh straight day of the workweek. When both federal and state law apply, the employer uses the one that gives the employee the most wages. If the employee is entitled to overtime under federal or state law and the employer does not comply, the latter is in violation of the respective law.
Applicable Employees
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Federal overtime laws apply to employees classified as nonexempt and are covered under the FLSA. For example, an employee has FLSA coverage if she works for a hospital or institution that cares for the sick or elderly; a business that generates more than $500,000 yearly; a federal, state or government agency; a school or higher learning institution; or performs interstate commerce duties.
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Exemptions
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The FLSA has strict guidelines for labeling an employee as exempt. Exempt employees are excluded from the act's overtime pay requirements. To qualify for exempt, the employee must fulfill the FLSA income and/or job duties tests relevant to her position. In most cases, professional, executive, administrative and some computer employees, outside salespersons and highly compensated employees are exempt. A salaried-exempt employee is one who meets the FLSA salary basis and job duties requirements. If she's salaried but does not meet the criteria, she's salaried-nonexempt and should receive overtime, if worked. The employer should examine state law for additional exemption requirements to ensure proper payment.
Considerations
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The employee can file a complaint with the United States Department of Labor, Wage and Hour Division, if her employer violates federal overtime laws. She files a complaint with the state labor department if the employer violates state overtime laws. She can file a wage claim with either department (or pursue a lawsuit in court) to recover unpaid overtime wages, and if applicable, liquidated damages and attorney/court costs.
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