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How Employers Avoid Paying Overtime Wages

All employers covered by the Fair Labor Standards Act (FLSA) are legally required to pay employees for working overtime, with only a few exceptions. Overtime wages are calculated as 150% of the hourly wage for every hour over 40 worked in a week. Unfortunately, employers do not always follow this law, and workers all over the country are denied the wages they rightfully deserve. In fact, companies have specific strategies and tactics in order to avoid paying employees for overtime work. If you employer has used any of the following strategies and you have not received the proper compensation for your work, you may be in the position to file a wage claim.

  • One of the most common ways that employers avoid paying overtime wages is by telling salaried workers that they are simply not eligible for overtime compensation. Employees may not be aware of laws put in place by FLSA, and many people think that salaried workers do not have the right to overtime wages. This is simply not the case. The only workers who are not eligible for overtime pay are those considered “exempt” under the FLSA standards.
  • Employers can improperly classify workers as “independent contractors.” Independent contractors are exempt from the right to overtime wages under FLSA laws, so companies try to save money by classifying salaried or hourly workers as independent contractors. If you’re considered an independent contractor by your employer, chances are you are missing out on more than just overtime pay.
  • If your employer is requiring that you perform off-hour duties, but not paying for the time you put towards these duties, then you are being cheated out of deserved overtime pay. These off-hour duties may include mandatory training, before or after-hour meetings, or arriving before your clock-in time to put on a uniform or complete other prep work. The time it takes you to complete these duties must be calculated into your wages or overtime pay.

If you believe you that your employer has not fulfilled their legal duty of paying you for overtime work, it is wise to find an attorney who can help you through the process of fighting for compensation. The lawyers at The Melton Law Firm have years of experience with wage disputes and are prepared to protect and defend your rights. Contact our offices today by calling (512) 330-0017.

The Melton Law Firm
2705 Bee Caves Rd #220
Austin, TX 78746
(512) 330-0017

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