Federal and Pennsylvania laws require employers to pay their non-exempt employees for every hour that they work – and any hours in excess of 40 in one week must be paid at one-and-one-half times the employee’s regular hourly rate.
I am often surprised at how many employers ignore this law and make their own rules. Those rules are usually unlawful.
“Comp time” – where the employer promises time off someday in exchange for unpaid work today – is unlawful. Holding hours over to the next pay period to avoid overtime is unlawful. Allowing employees to work “off the clock” to avoid overtime is unlawful. Paying a stipend instead of overtime is unlawful. Requiring employees to punch out, then return to work is unlawful.
Remember, “exempt” employees get salaries, and do not get overtime pay. “Non-exempt” employees are hourly workers, and must be paid overtime. The bug question in these cases is usually whether the employee is correctly categorized as “non-exempt.”
This can be a complicated question. Basically, the more executive, managerial, supervisory duties you have, the more likely you are exempt. But just because an employer calls you a “manager” or “executive” doesn’t necessarily mean you are “non-exempt.” What matters are your actual duties.
Also, some workers who are primarily sales professionals are not entitled to overtime, and if they are paid by commission, they may not even be entitled to minimum wage.
The federal Fair Labor Standards Act and the Pennsylvania Wage Payment and Collection Law offer protection for workers whose rights to fair wages have been violated. Employees can recover double their unpaid wages as well as attorney fees and costs. If you have questions, or think that your boss might owe you money, call my office at (570) 824-3088.
Learn more by reading my Secret Employee Handbook. It is free, just click the link and provide the requested information. If you want a paper copy, call or email my office.