
The Fair Labor Standards Act requires employees to be paid overtime. In most cases, employees are paid time-and-one-half their regular pay rate for each hour worked over 40 per week. Many workers, however, are "exempt" from overtime laws and do not have to be paid. Executive, administrative and professional employees are generally exempt from overtime.
In recent years, there has been a rise in litigation over unpaid overtime. Several nationwide companies, including Wal-Mart, Radio Shack, Starbucks, Taco Bell, and Computer Sciences Corporation, have faced lawsuits in recent years over wage discrepancies.
Most disagreements in court center on who is labeled exempt from overtime. Because government descriptions of job duties haven't changed since 1949, determining who falls under this category can be difficult. Bona fide executives and some categories of computer, agricultural and recreational workers are usually exempt while non-supervisory factory or office workers are usually not exempt. Salaried workers are also not always exempt. Employers usually neglect to pay overtime because they assume the employee is exempt. However, the Department of Labor or the court is responsible for making this decision.
Often, the employer may attempt to cheat an employee out of overtime benefits in an effort to save money. For example, in 2002, a federal jury found Wal-Mart guilty of forcing employees in Oregon to work unpaid overtime. According to the suit, managers assigned more work than could be completed in a single day, forcing employees to remain on the job after clocking out. Workers were allegedly reprimanded when they asked for overtime pay.
If you feel you are owed compensation for overtime work, it may be important to contact an attorney who can help you protect your legal rights. Please keep in mind that there may be time limits within which you must commence suit.
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