Knowing the Overtime Wage Laws to Avoid Getting Underhanded

Employees have rights when it comes to getting paid by the company they are working for. When it comes to wage and hour claims there are different protocols they should know.

The Fair Labor Standards Act requires companies to pay overtime wages for the extra hours of work by employees.

In order to make sure that employees get their overtime pay, it will be helpful for them to record all their paychecks. Calculating their monthly wages will ensure they are getting the salary they should receive every month.

Just this year in Fremont, California, the New United Motors Manufacturing Inc. (NUMMI) paid 3,672 workers a total of $62,285 in overtime back wages.

“We have found that a number of employers overlook the requirement to include bonuses in the calculation of overtime pay,” said George Friday Jr., regional administrator of the Wage and Hour Division.

Apparently the company’s bonuses failed to reflect on the overtime hours their employees had when the bonuses were issued. The employees who were affected were production line workers—manufacturing cars and trucks for Toyota and General Motors.

According to the recent reports, employees are paid the federal minimum wage of $6.55 per hour, increasing to $7.25 per hour (which began last July 24).

They should “receive overtime at one and one-half times their regular rates of pay for hours worked beyond 40 per week.” The lesson learned here is that the companies should have an accurate time and payroll records.

Overtime exemptions

There are exemptions that companies follow when it comes to wages. Certain positions in the executive and administrative levels are exempted from overtime and minimum wage pay. Those who are working in schools, doing field work and in computers are also included. Newspapers, telecommunication, ships, fishing, farms, babysitters also follow.

However, some are only exempted from the requirements of overtime pay. Retail, service, media, movie, farm and housekeeping are on top of the list.

Those who are in the transportation (airplanes, boats, trucks, taxis, cars, trailers) companies whether they are full time or part time are also exempted as well as railroad and air freight businesses.

Partial exemption applies to agricultural, petroleum, hospital and residential care. If an employee is not a high school graduate he can be partially exempted from overtime pay. Lastly, those who work 10 hours per week also are included.

Companies should properly pay their employees the correct salary plus the overtime pay for the extra hours rendered to avoid dealing with lawsuits which employees can file.

About The Author To help you pursue overtime claims, consult with our skilled Los Angeles overtime claim attorneys. Visit our website at http://www.mesrianilaw.com/ and call us toll free for immediate legal assistance.