Unpaid Overtime Wages

Contact our Dallas employment lawyers if you have a claim against an employer for unpaid overtime wages. Federal law requires employers to pay employees overtime wages for every hour worked over 40 hours a week. Employers often fail to pay overtime wages to employees, as required by law. If you believe that your employer has failed to pay you overtime wages in accordance with the Fair Labor Standards Act of 1938 (“FLSA”), contact one of our employment lawyers today to schedule a consultation in either our Dallas or Austin office.

Overtime Wages Under the FLSA

The FLSA mandates that employers pay overtime wages to employees for all hours worked over 40 hours a week. Although the law provides exemptions for some employees, most employees are eligible for and should be paid overtime wages. Even when an employee agrees to be paid on a salary basis, if the employee does not meet one of the FLSA overtime exemptions, the employee may bring a claim against the employer for all unpaid overtime hours during the last two or three years. Additionally, the employee has the right to bring the claim while still working for the employer. In fact, the FLSA prohibits an employer from retaliating against an employee because the employee complained about overtime violations.

How to Calculate the Overtime Pay Rate?

Under the FLSA, an employee’s overtime rate is equal to 1.5 times the employee’s regular rate of pay. For example, if an employee’s only compensation is $10 per hour, then the employee’s hourly overtime rate is $15, which is 1.5 x $10. Most employers use this method when paying overtime. However, when an employee receives compensation in addition to the hourly rate, this is not the correct method for calculating the overtime rate.

The overtime rate is equal to 1.5 times the regular rate of pay. The term “regular rate of pay” not only includes an employee’s hourly pay rate, but it also includes almost all other non-discretionary compensation paid to an employee by an employer, such as bonuses and commissions. For example, a weekly bonus must be added to an employee’s hourly rate of pay to determine the regular rate of pay. To do so, the employer must take any bonus or commission amount and divide it by the hours worked during the same period. That amount must be added to the employee’s hourly rate, which becomes the regular rate of pay. For example, if an employee worked 45 hours during the week and received a bonus of $450 for that week, then an employer must add $10 ($450 bonus divided by 45 hours) to the employee’s hourly rate to determine the regular rate of rate. Then, that is the amount that is multiplied by 1.5 to find the correct overtime pay rate.

If your overtime wages are not being calculated correctly, contact our Dallas or Austin office today to schedule a consultation with an employment lawyer.

What Employees Are Exempt from Overtime Requirements?

Although most employees must be paid overtime wages for hours worked in excess of 40 hours a week, there are certain exemptions within the FLSA. The main exemptions to overtime wages are referred to as the executive exemption, the administrative exemption, and the professional exemption. One of the requirements of the administrative exemption is that an employee must manage two or more full-time employees. To qualify for the administrative exemption, an employee must, among other things, have the ability to exercise discretion regarding business matters of significance. However, most employees do not have the amount or type of discretion needed to qualify for this exemption. Under the professional exemption, an employee must be in a position or role that requires an advanced education, generally in the field of science or learning.

In addition to the requirements listed above, there are several other requirements that must be met in order to exempt an employee from being entitled to overtime wages. Contact one of our Dallas employment lawyers if you have not been paid overtime wages that are owed to you.

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