Visit our 2014 Holiday Gift Guides
Home > >

If you work on salary, is it legal not to get paid for overtime?

POST A REPLY
 
Thread Tools
Sep 21, 2011, 3:03pm   #1
A
Thread Starter
Antares6
Account Deactivated
This is actually an issue that friend is having at work. She works in retail management(assistant manager). She is on salary and recently her boss told her that he wants her to work 6 days a week, instead of five like she normally does. When she asked him about compensation, he told her that she won't be paid extra. This is not because there is some project he needs her to work on, he told her that business was slow and they need to get more sales.
She just told me the other day that she was talking to coworker(who is also an assistant manager)and who also was told to work 6 days a week, that he WILL be getting paid overtime(that's what he was told by the boss). That doesn't seem right. And they are not getting extra days off or anything like that.
I know that laws vary from state to state but does anyone know if this is legal?
Sep 21, 2011, 3:17pm   #2
redney's Avatar
redney
Lovin' Life!
Whether or not she's eligible for overtime pay depends on how her and her co-workers jobs are classified: whether they are exempt (not eligible for overtime pay) or non-exempt (eligible for overtime pay).

The US Fair Labor Standards Act (FSLA) has standards to help companies determine what jobs are exempt and non-exempt. In general to be exempt, 1) they must earn a salary and 2) hold a position with duties the U.S. Labor Department designates as appropriate for exempt positions. There are checklists, etc. on the web, but my bet is your friend's employer has things classified correctly.

Exempt workers are paid for the job they do, not the hours they keep. Many management type jobs (i.e. responsibility for a department, responsibility for people, hiring/firing, etc.) are exempt.

So in a nutshell, if your friend is an exempt employee, then yes, it is legal for her to not receive overtime pay. If she has questions on her job classification, she should contact her company's HR department.
Sep 21, 2011, 3:24pm   #3
A
Thread Starter
Antares6
Account Deactivated
Originally Posted by redney
Whether or not she's eligible for overtime pay depends on how her and her co-workers jobs are classified: whether they are exempt (not eligible for overtime pay) or non-exempt (eligible for overtime pay).

The US Fair Labor Standards Act (FSLA) has standards to help companies determine what jobs are exempt and non-exempt. In general to be exempt, 1) they must earn a salary and 2) hold a position with duties the U.S. Labor Department designates as appropriate for exempt positions. There are checklists, etc. on the web, but my bet is your friend's employer has things classified correctly.

Exempt workers are paid for the job they do, not the hours they keep. Many management type jobs (i.e. responsibility for a department, responsibility for people, hiring/firing, etc.) are exempt.

So in a nutshell, if your friend is an exempt employee, then yes, it is legal for her to not receive overtime pay. If she has questions on her job classification, she should contact her company's HR department.
I guess the issue is her coworker who has the same title and responsibilities so why is he getting extra pay and she isn't? If he is classified not exempt and she is, even though they are doing the same job?
And unfortunately, this is a family owned store and there isn't HR department. She told me that she spoke with lady who does their payroll and she didn't appear to know anything about it.
Sep 21, 2011, 4:33pm   #4
redney's Avatar
redney
Lovin' Life!
Originally Posted by Antares6
I guess the issue is her coworker who has the same title and responsibilities so why is he getting extra pay and she isn't? If he is classified not exempt and she is, even though they are doing the same job?
And unfortunately, this is a family owned store and there isn't HR department. She told me that she spoke with lady who does their payroll and she didn't appear to know anything about it.
Hmm, well then the only solution is for her to ask her boss directly since no one here can answer this question.

Good luck to her!
Sep 21, 2011, 8:09pm   #5
crazzee_shopper's Avatar
crazzee_shopper
Now a Mrs.
Originally Posted by redney
Whether or not she's eligible for overtime pay depends on how her and her co-workers jobs are classified: whether they are exempt (not eligible for overtime pay) or non-exempt (eligible for overtime pay).

The US Fair Labor Standards Act (FSLA) has standards to help companies determine what jobs are exempt and non-exempt. In general to be exempt, 1) they must earn a salary and 2) hold a position with duties the U.S. Labor Department designates as appropriate for exempt positions. There are checklists, etc. on the web, but my bet is your friend's employer has things classified correctly.

Exempt workers are paid for the job they do, not the hours they keep. Many management type jobs (i.e. responsibility for a department, responsibility for people, hiring/firing, etc.) are exempt.

So in a nutshell, if your friend is an exempt employee, then yes, it is legal for her to not receive overtime pay. If she has questions on her job classification, she should contact her company's HR department.
Pretty much everything redney stated.

As far as why the difference in the 2 coworkers: If their job descriptions are the same and titles are the same, then their classification should be the same as well. Ask HR (if there is an HR person) or ask the boss for clarification.
Sep 21, 2011, 8:57pm   #6
lorihmatthews's Avatar
lorihmatthews
A taste for the arts
If I got paid for all the hours I worked overtime as an exempt employee throughout my career, I'd be a squillionaire.
Sep 22, 2011, 9:24am   #7
Graw's Avatar
Graw
Member
Originally Posted by Antares6
This is actually an issue that friend is having at work. She works in retail management(assistant manager). She is on salary and recently her boss told her that he wants her to work 6 days a week, instead of five like she normally does. When she asked him about compensation, he told her that she won't be paid extra. This is not because there is some project he needs her to work on, he told her that business was slow and they need to get more sales.
She just told me the other day that she was talking to coworker(who is also an assistant manager)and who also was told to work 6 days a week, that he WILL be getting paid overtime(that's what he was told by the boss). That doesn't seem right. And they are not getting extra days off or anything like that.
I know that laws vary from state to state but does anyone know if this is legal?
She should review her contract.


Originally Posted by lorihmatthews
If I got paid for all the hours I worked overtime as an exempt employee throughout my career, I'd be a squillionaire.
Sep 22, 2011, 12:17pm   #8
twinkle.tink's Avatar
twinkle.tink
Choose to be happy
This is a tricky situation. The simple answer is no, managers, as salaried employees are exempt from overtime...

...but, many, many, many employees that are salaried 'managers' really should not be exempt from overtime. Many companies have gotten in trouble for this in the past.

Your friend should call the labor board from your state, she can do so anonymously (if she wishes) and describe the situation and her position and they can advise her better. I have had wonderful luck with the labor board in the past.

Good luck to your friend.
Sep 22, 2011, 9:09pm   #9
ILuvShopping's Avatar
ILuvShopping
★☆★★☆★★☆★
it's possible the co-worker negotiated when they were hired to receive overtime.

i have a friend who has a position at a company that that is normally salaried. but when she got the job she negotiated to be hourly so she would get over-time if it came down to it. and they allowed it.

and your friend might want to be careful - usually employees are not suppose to discuss that type of stuff among eachother.
Oct 1, 2011, 11:25pm   #10
pr1nc355's Avatar
pr1nc355
Orange Pyramid
Originally Posted by lorihmatthews
If I got paid for all the hours I worked overtime as an exempt employee throughout my career, I'd be a squillionaire.
Same here
Oct 2, 2011, 2:21am   #11
d
doreenjoy
zzz
Originally Posted by ILuvShopping
it's possible the co-worker negotiated when they were hired to receive overtime.

i have a friend who has a position at a company that that is normally salaried. but when she got the job she negotiated to be hourly so she would get over-time if it came down to it. and they allowed it.

and your friend might want to be careful - usually employees are not suppose to discuss that type of stuff among eachother.

I just wanted to highlight this very important point.
Oct 2, 2011, 2:49am   #12
b
beachy10
Member
I would assume this is something you would know before you are hired. I have only had one job where I was salaried but received overtime. The only reason I rec'd OT was because the amount of OT expected of me was excessive (for example I had to work several 25-32 hr shifts on a qtrly basis. I was also paid a low salary knowing I would make up the rest of the $ via OT. My job now I have to work OT but without the OT pay but it's usually only for a few extra hours per qtr.
Jul 8, 2012, 7:28pm   #13
AbbytheBT's Avatar
AbbytheBT
Boston Terrier lover
I haven't spent time in this forum, because I specifically come to purseblog to get AWAY from my day job, however, I'd hate for any readers to believe that just because a company has opted to pay an asst manager a salary, the worker is exempt from OT.

This is one of the biggest common mistakes found in FLSA mis-classification lawsuits.

More information on federal overtime law and exemptions can be found here:http://www.dol.gov/whd/regs/compliance/fairpay/main.htm
Jul 9, 2012, 11:49pm   #14
D
Dianabanana12
Account Deactivated
OMG no its not illegal, not where I am from at least, thats what a salary is one set amount of money you get paid, regardlress of hours! I was an accountant in public, no longer in public now, but are you kidding me I use to work 80 hours weeks, if i got paid over time i would have been a millionaire, tahts funny though, so no its not illegal. If he is asking her to work an extra day and that wasnt in the signed contract/ agreement she can probably talk to him, but again no lol i cant imagine that being illegal, if she was hourly, then yea, but salary no ....

still cracks me up
Jul 9, 2012, 11:50pm   #15
D
Dianabanana12
Account Deactivated
Originally Posted by lorihmatthews
If I got paid for all the hours I worked overtime as an exempt employee throughout my career, I'd be a squillionaire.
OMG right haahah thats what i just said in my last post, id literally be rolling in money hahah i use to work 80 hour weeks when i was at a CPA firm oh god, imagine all the over time
POST A REPLY
  HOME > >  
TOP

Thread Tools