Matters of youth employment standards, record keeping, minimum wage, and overtime pay changed since the latest labor rules took effect on 1st January 2020. Businesses across Florida have had to make a lot of adjustments to how they remunerate their workforce.
Failure to understand and adhere to these requirements can lead to lawsuits and litigations, which can negatively impact the organization’s finances. Constant consultation with a Daytona Beach business lawyer ensures that a business knows what is required by law and takes the necessary steps to comply.
Does Being On a Salary Exempt One from Overtime?
Being on a salary simply means that you receive the same pay for each payment term. But it does not determine whether or not you can receive overtime. A person’s employment type is the only thing that has a bearing on overtime pay. A Daytona Beach employee evaluation lawyer can advise you on whether an employee is entitled to overtime pay or not.
Individuals meeting all the criteria of an exempt employee cannot ask to be paid overtime. Non-exempt employees, on the other hand, should be paid extra if they work beyond 40 hours in a week. For every extra hour worked, they are entitled to a pay of one-and-a-half their normal rate.
Which Employees Are Exempted from Overtime Claims?
Salaried exempt employees are not supposed to claim overtime. However, there are exemptions to this rule, and a Daytona Beach employee evaluation lawyer can offer guidance. Exempt employees include members of the:
Executive – An executive employee is one that:
- Manages an enterprise, its department, or a subdivision
- Supervises at least two full-time employees
- Has power to hire and fire employees or influence those decisions
Administrative – This includes employees who are directly in charge of business operations in the organization.
Learned Professionals – These are employees doing work that requires advanced knowledge. They must have been trained to use specialized intellectual instructions.
Creative Professionals – This group includes employees who utilize their talents, originality, imagination, and invention to get work done.
Computer Professional – This is an employee who designs and develops computer programs and systems. It can be a programmer, computer analyst, or software engineer.
Outside Sales Person – The person is often away from the employer’s business premises – obtaining orders or contracts and making sales.
Highly Compensated Employees – These are employees who perform at least one duty of an administrative, executive, or professional employee regularly. Their job isn’t manual, and their salary is $100,000 or more in a year.
Are There Exceptions to Barring Exempt Employees from Overtime Pay?
An employee’s job title is not a determinant for overtime pay. Instead, eligibility is determined by occupation, duties, and wages. Primarily, the tasks they actually perform in the company supersede what is indicated in the job description.
Title vs. Duties
The employer could call the employee a manager, yet there are only two other employees, and he/she primarily helps clients register and processes their orders. These duties eliminate the managerial exemption on the employee and make him/her entitled to overtime pay.
Salary Amount
Administrative, executive, outside sales, and computer-related occupations are usually exempt from overtime. However, an employer cannot claim an exemption for an employee unless they are paying them a salary of not less than $23,660 in a 52-week year or not less than $455 per week. So, if the employee is an EAP employee but is earning a weekly salary of below $455, they are not exempted from overtime benefits. Similarly, a salary of more than $455 does not automatically make one an exempt employee.
Can an Employer Substitute Overtime with Comp Time?
Employers in the private sector cannot substitute overtime with comp time or tips earned by delivery persons and bartenders. Government workers are the only employees that can get comp time instead of overtime.
Asking an employee to accept comp time violates the Fair Labor Standards Act (FLSA), and you can end up with some court cases. Consulting with an employee evaluation lawyer in Daytona Beach, FL, is critical in understanding what is acceptable and what is not.
What Are Some of the Overtime Scams in the Workplace?
Employers sometimes employ tactics to avoid paying overtime. This is unlawful and can cause employers to face a lot of problems.
- Working Off the Clock: An employee may finish their shift, yet they haven’t completed their work. The employer insisting that they “clock out” but still stay to finish the work is wrong.
- Shortchanging the Hours: Employees are required to take regular breaks. Deducting the 5-20-minute breaks from the hours worked isn’t ideal.
- Employee misclassification: To avoid paying overtime, some employers misclassify employees as being exempt.
- Approval for Time: Sometimes, employers can deny overtime because the employee did not request to work extra hours.
Can an Employee Be Fired for Claiming Unpaid Overtime Against an Employer?
Penalizing, demoting, or firing an employee simply because they claimed their unpaid overtime income is a bad idea. Such actions are illegal since they go against the requirements of the FLSA. If the employee files a lawsuit, the employer may face harsh penalties.
The court can reinstate the employee’s position in the organization and ask the employer to pay the unpaid compensation. An employee can claim unpaid overtime within three years, according to the FLSA. However, Florida’s employment laws can extend the period to go beyond three years. A Daytona Beach employee evaluation attorney can tell concerned parties exactly how much time they have left.
An Invaluable Business Partner Offering Professional Legal Counsel
Not knowing cannot be used as a defense in a lawsuit and cannot deter the court from imposing harsh penalties on a business for violating the law. However, working closely with your Florida business lawyer puts you at an advantage throughout the process.
Both start-ups and mature companies require legal advice from time to time. Our law firm is located near Jackie Robinson Memorial Baseball Park and the Halifax Historical Museum. You can also reach us online or call us today at (850) 888 8992