By: Tom White
It happened again. You worked late into the evening and weren’t paid for the additional hours you worked. You feel you are owed overtime wages, but your employer tells you that you aren’t.
You’re right to question whether or not this is accurate. Many employers misclassify their employees to avoid having to pay them overtime. If you suspect you could be one of these employees, you might have grounds to take action and recover the overtime pay you are owed with the help of a lawyer.
How Do You Know if You Are an Exempt or Nonexempt Employee?
Employment laws that relate to overtime pay are divided into two parts: exempt employees and non-exempt employees.
Non-Exempt Employees
Non-exempt employees are owed overtime pay if they work additional hours outside of their normal schedule. Non-exempt employees usually have lower-paying jobs, less responsibility, and less autonomy over their daily tasks. These jobs include administrative positions, secretarial roles, and positions where another person sets your schedule.
Exempt Employees
Exempt employees are higher-level employees who usually earn a salary that is about twice the amount of minimum wage or more. These employees are given more freedom to complete their tasks with the understanding that they may have to put in additional hours to get their jobs done. An exempt employee usually has a more prestigious role in their company, and their salary and responsibilities reflect this point.
Misclassification Is a Crime
Unfortunately, some employers attempt to side-step paying overtime by misclassifying employees. That means that some employers will classify a non-exempt employee as an exempt employee without giving them the pay, title, and scheduling autonomy that goes along with an exemption.
Misclassifying an employee is illegal. Employers know that non-exempt employees who work over eight hours per day or more than 40 hours per week must be paid overtime. With tight budgets, skeleton crews, and shift reassignment, they may attempt to avoid paying you the overtime you deserve.
If you think you’ve been misclassified, you should consult a qualified labor law attorney to explore your legal options. Outcomes may vary depending on your specific circumstances.
What Do You Do if You Were Misclassified as Exempt from Overtime Pay?
The first step in confronting an employer who has misclassified their employee(s) is to consider hiring an experienced employment attorney. An employment attorney can help you understand your rights and determine if you have truly been misclassified. Your attorney may investigate your case to evaluate whether you were owed overtime and could file a lawsuit on your behalf if necessary.
Although it can be intimidating to pursue your employer for misclassification, it is illegal for an employer to retaliate against an employee who seeks fair pay under wage and hour laws.
Wage and Hour Laws in Washington D.C.
Wage and hour laws vary from state to state. In the District of Columbia, several employees are exempt from overtime laws. These include:
- Airline employees: If an employee voluntarily trades workdays with another to use travel benefits, they are exempt from overtime pay.
- Automotive dealership employees: Auto salesmen, partsmen, or mechanics whose primary job is selling and/or servicing vehicles are exempt provided they do not work for a manufacturer.
- Commissioned employees: Commissioned employees who have a base pay that is one and a half times the minimum wage and whose commission is more than ½ of the employee’s compensation for a set period are exempt.
- Railroad employees: Railroad employees are all considered exempt employees. Railroad employees should contact their union if they feel they are being improperly paid.
- Seamen: Seamen are considered exempt employees. Seamen should contact their union if they feel they are being improperly paid.
- Live-in domestic workers: These are individuals who are employed as domestic workers but who live with their employers in the employer’s home.
- Companions for the elderly or infirmed individuals: If a worker is employed as a companion for an elderly or infirmed person, they are typically exempt. However, if the employee spends more than 20% of their time on household work that is not directly related to caring for the elderly or an infirmed person, then they are not considered a companion employee.
There are laws to protect these employees from being underpaid or forced to work too many hours. A qualified labor law attorney can help assess whether your employer’s practices comply with wage and hour regulations.
Misclassifying Employees as Independent Contractors
Another way employers may attempt to avoid paying overtime is by classifying an employee as an independent contractor. Independent contractors are hired by companies to perform tasks but are not employees of the company. They are therefore not entitled to overtime.
Independent contractors are classified as individuals who:
- Own their own business
- Can determine how much work they want to do
- Provide their own materials for their work
- Work with multiple clients
- Establish temporary relationships with clients that end when the requested work or project ends
- Make the final decision about whether to take on new projects
If these criteria do not apply to your role, you might not qualify as an independent contractor and may instead be a misclassified employee. Consulting with an attorney can clarify your status.
Can You Sue Your Employer if You Were Misclassified as Exempt?
If it is determined that you were misclassified, your employer could face penalties and be required to pay you for overtime wages owed. In addition, if multiple employees were misclassified, a class-action lawsuit might be an option. However, the ability to recover lost wages or pursue legal action depends on the specific details of your case.
Misclassified as Exempt from Overtime Pay FAQ
What Is the FLSA Overtime Rule and How Does It Apply to My Case?
The Fair Labor Standards Act (FLSA) provides that covered non-exempt employees must be paid overtime if they work more than 40 hours in a workweek. A workweek is defined as any recurring seven-day period that consists of 168 hours.
Overtime must be paid at a rate of one and one-half times the employee’s regular rate of pay. For workers over the age of 16, there is no limit to the number of overtime hours they can work. The FLSA does not require an employer to pay an employee overtime pay if the employee agrees to work on weekends, days of rest, or holidays unless working those days will result in overtime for the employee.
Why Are Salaried Employees Exempt from Overtime?
Salaried employees are exempt from overtime pay because it is understood that these positions have a higher level of responsibility and require longer hours for task completion. Salaried employees are often white-collar workers who have complete autonomy over their schedules. Salaries for these employees should therefore amount to at least twice the current rate of minimum wage.
If you are a salaried employee without autonomy over your schedule or assignments, you may have been misclassified. A lawyer can help you determine whether you have a valid claim.
Disclaimer: The content in this article is provided for general knowledge. It does not constitute legal advice, and readers should seek advice from qualified legal professionals regarding particular cases or situations.
Published by: Annie P.
