Have You Been Denied Overtime Pay Due To Misclassification?

If, per week, you work more than 40 hours, chances are, you are entitled to overtime pay, according to federal law. Sometimes, however, companies will try to save money by assigning their workers job titles that are “inflated”. Another way of getting around overtime might be to tell a salaried employee that they are exempt from federally required overtime due to their salaried position.

These tactics, involving overtime pay and misclassification, are both illegal and unethical. Granted, some employees are truly exempt from overtime – but make sure if you are being labeled one of these employees, the position and title truly do apply to you. It’s not just a way for your employer to avoid paying overtime.

Positions Exempt from Overtime

From federal overtime laws, certain employee categories are exempt. The following are exemptions set forth by federal hour and wage regulations:

Outside sales exemption – Here the primary duties of an exempt employee are clear: Those whose primary duties are obtaining signed contracts (for services) or making sales. In sales away from the place of business belonging to their employer, they must be regularly and customarily engaged.

You may be entitled to overtime pay if you were classified in this manner but, as a salesperson, you worked primarily out of a corporate office.

Computer employee exemption – In some cases, this exemption applies to people such as the following:

  • Computer software engineers
  • Computer programmers
  • Computer systems analysts

To qualify for this position, an hourly wage must exceed $27.63 (this is subject to change).

Who does this exemption not apply to? The following:

  • Employees who repair and manufacture computer hardware.
  • Helpdesk workers.
  • Employees who repair or manufacture related electronic devices.

Those who feel they may have, under this exemption, been misclassified and have filed lawsuits include helpdesk workers and tech support individuals.

Professional exemption – To simplify matters, here are some examples of professional exemption: engineers, teachers, accountants, and doctors. These people have all received specialized intellectual instruction for their job and have advanced knowledge in their field.

Administrative exemption – The primary duty of an administrative employee must be the performance of non-manual or office work directly related to the general business operations or management of the employer’s customers or the employer. Regarding matters of significance, job duties here must include the exercise of independent judgment and discretion. 

Note: Secretaries, administrative assistant-classified employees, and clerical workers do not usually fit the requirements here, so federally mandated overtime pay would be required. 

Executive exemption – You must manage one of the following for the executive exemption to apply and it must be your primary job:

  • A subdivision
  • A department
  • The company

Additionally, the following must apply: 

  • For at least two other workers classified as full time, you must direct their work.
  • You must have the authority to fire or hire employees. Or…
  • At the very least, when making personnel decisions, the company must use your recommendations.

Carcich O’Shea Can Help Determine If You Have Been Misclassified

Carcich O’Shea would like to pose this question: “Do you feel that you are a victim of employee misclassification?” For the overtime wages you were wrongfully denied, would you like to recover compensation? If yes is your answer, you have come to the right place. But time is limited on lawsuits of this nature, so don’t delay. 

Contact us today if you’d like to discuss a misclassification and denied overtime case, or other workplace matters that may have violated the law. 

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