Some owners / managers may not realize it, but these typical excuses for not paying overtime (detailed below) are really weak, and if you use them, you could be breaking the law:
- Saying that the employee is on salary. Understand that even salaried workers must be paid overtime IF their jobs meet certain exemption criteria. Put simply, if they are not entrusted with very many independent decisions, then chances are they may qualify for overtime.
- Saying that longer hours are already in his/her contract. Some employers try to avoid paying overtime by ‘building’ extra hours into employment contracts. Note though, employees can’t ‘opt out’ of overtime pay.
- Saying that he/she already makes a lot of money. White-collar workers who earn more than $100K per annum and meet the ‘independent judgment’ criteria are ineligible for overtime ONLY if they make at least $455 per week in guaranteed salary. In most cases, bonuses don’t count.
- Saying that he/she is an outside sales rep. Outside sales persons are generally exempt from overtime pay. However, if they spend more than half their time in the office, they may actually qualify.
Employees … know your rights. Employers, treat your employees right!
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