The Common Exemptions from Overtime Pay


According to Federal law, employees who work for over 40 hours per week are entitled to overtime pay. To avoid paying workers this money, employers give their employees inflated work titles. Employers then use these false titles as grounds to claim that their employees are not entitled to overtime. This form of wage theft is called employee misclassification. This web page will explore some of the job titles that are exempt from overtime pay, and what action you should take against this violation.

What Job Titles Are Exempt from Unpaid Wages?

According to wage and hour law, certain employees are exempted from overtime laws. This means they are not entitled to receiving payment for overtime even after they work for over 40 hours a week. To be exempted from overtime wages you should be paid more than $455 in a week. Furthermore, if some of your duties are in line with the exempted job titles but you spend most of your time performing tasks that fall outside the exemption, you can claim overtime pay.

Executive Exemption

You qualify for executive exemption if your job duty is either the management of the company or a division or department of the company. Executive employees are also classified as workers who direct the activities of at least 2 full time employees. Additionally, to receive an executive exemption, an employee must be authorized to fire or hire other employees.

Administration Exemption

An administrative employee should be charged with performing non-manual or office work that is directly associated with general business duties or management of the employer or their customers. An employee who qualifies for administration exemption is charged with duties such as independent judgment or exercising their discretion when dealing with urgent matters. You should note that secretaries, administrative assistants, and clerks, who are commonly classified as administrative staff, do not fit the conditions of administrative exemption and are entitled to get overtime pay.

Independent Contractors

Most of unpaid overtime pay lawyer & lawsuit filings involve an employer misclassifying an employee as an independent contractor. Independent offer goods or services to other individuals or businesses under the conditions of a contract. Independent contractors are simply self-employed and regard the employer as their clients.

How Should You Act If You Are Misclassified?

If you are misclassified by your employer, the first thing is to determine what your wrong job title is and to show proof that your job duties are not in line with your job title. There are diverse ways of dealing with employer misclassification. For example if you are misclassified as an independent contractor, you will have to involve the IRS for tax related issues.

The two main options when acting against your employer’s misclassification is to make a complaint to the Department of Labor or to hire an employment lawyer and sue your employer.

If your employer has misclassified to avoid payroll taxes and to rob you of overtime pay, you need to take action against them. Misclassification usually involves giving you the wrong job title to render you exempt from overtime pay. Your best course of action against a misclassification is complaining to the Department of Labor or seeking a lawsuit against your employer.

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