Violations Of Overtime Laws On The Rise

October 20, 2011

Determining whether a worker is an independent contractor, an employee or an employee who is “exempt” can be a complex determination – and one that can make a significant impact on the amount a worker makes in overtime pay. Under the Fair Labor Standards Act (FLSA) employees who are not exempt must be paid overtime wages at a rate of one and one-half their regular rate of pay for all hours worked in excess of 40 hours in a workweek. However, if you are an independent contractor or are considered “exempt” your employer isn’t required to pay overtime compensation.

To determine whether a worker is an independent contractor, it is important to look at the entire relationship and evaluate the degree or extent of an employers right to direct and control the worker. The more control and employer has over a worker, the more likely that worker is to be considered an employee. Likewise, whether an employee is exempt is not always straightforward and several factors must be evaluated. Generally, if you make more than a certain amount of money per week and if you perform a certain type of “white collar” work, then you are exempt from overtime laws and your employer isn’t required by law to pay you overtime, no matter how many hours worked.

Although employers may unintentionally “misclassify” workers and fail to pay them the wages due, other times employers may willfully place employees in the wrong category. According to one report, the economic slowdown has “exacerbated worker misclassification” in order to circumvent fair labor standards, health and safety protections, and unemployment and workers’ compensation benefits. Either way, workers may be deprived all of the wages they are entitled to.

If you believe you have been misclassified, it is important to speak with a knowledgeablewage and hour attorney who can review your situation and determine whether you may be entitled to back wages and/or other compensation.

In order to curb employee misclassification, the IRS and the Department of Labor (DOL) have signed a memorandum of understanding agreeing to work together to identify instances of employee misclassification.

If you believe you have been misclassified, the first thing to do is consult with an experienced Atlanta overtime pay attorney who can discuss your job responsibilities and determine whether you may be entitled to overtime compensation. For more information, contact the dedicated Georgia wage and hour attorneys at Buckley & Klein, LLP for a confidential consultation.