March 17, 2017 - Posts

Employees Are Often Misclassified, Incorrectly Denied Overtime Pay

In recent years, companies are aggressively working to cut costs, and employees are far too often the ones who feel the squeeze.  Many employees are routinely and intentionally denied overtime pay as a result of being misclassified by their employer, which violates the Fair Labor Standards Act (“FLSA”). By misclassifying employees, it has been estimated that employers are able to cut costs by approximately 40%. Misclassification deprives workers of overtime pay, leading to soaring corporate profits and income inequality nationwide.

American employees today are working harder and more productively, and are also more educated than ever before. However, many are barely able to make ends meet because an enormous and ever-increasing share of the resulting income growth from misclassification goes to corporate profits and exorbitant executive pay. If you’ve been misclassified, it’s time to fight back.

What does it mean to be “misclassified”?

Misclassification occurs when employees are incorrectly classified as “exempt from overtime” under the FLSA. The FLSA requires that most employees in the United States be paid overtime pay at one and one-half the regular rate of pay for all hours worked over 40 hours in a workweek.  However, the FLSA provides an exemption from overtime pay for certain employees who are employed as a bona fide executive, administrative, professional, outside sales employee and certain computer employees. Misclassification occurs in nearly all major industries including, among others, home health care, retail, oil and gas, financial services, and information technology companies.

An overview of the requirements to qualify as an employee exempt from overtime pay may be found on the Department of Labor’s website: https://www.dol.gov/whd/overtime/fs17a_overview.htm. Each exemption links to a fact sheet that offers a thorough explanation about that particular exemption.

Additionally, if you are classified by your employer as exempt, you can use the link to compare the primary duties required under your exemption to your actual job duties.  By doing so, you may find you have been improperly “misclassified,” and are being denied your legal right to receive overtime under the FLSA as a result.

Do you believe you have been misclassified as exempt?

If so, you may be entitled to unpaid overtime pay and other damages. We have successfully represented tens of thousands of workers all across the country in wage and overtime cases. We work on a contingency, meaning we only get paid if we get a recovery for our clients. To learn more about our Wage & Overtime practice, click here.