issues

Overtime Rights & Exempt Misclassification

Companies often misclassify employees as exempt from overtime pay requirements. We can help you get every dollar you’re entitled to.

Every year, millions of employees are classified as exempt from federal overtime laws. The truth is many of them are being illegally denied compensation they rightfully earned.    

 

Understanding Your Right to Overtime Pay

In general, you’re entitled to 1.5 times your regular hourly pay if you work more than 40 hours in a week. In some states, such as California, you are entitled to 1.5 times overtime pay for hours worked beyond eight in a single workday, and double pay for more than 12 hours. But if your employer misclassifies you as exempt from overtime, you won’t get paid this extra compensation—even though you’ve earned it. That means you won’t get paid everything you deserve.

Are You Actually Exempt?

A common misconception is that you aren’t eligible for overtime if you are a manager or receive a salary. What really matters is the work you actually do, not your job title or how you’re paid.

If your job title includes words like manager, supervisor, or executive, but your day-to-day tasks are mostly the same as the rest of the team, you might be misclassified as exempt from overtime. If you are paid a salary but your role is mainly about completing assigned duties rather than directing the business, you could be entitled to overtime.

For example, retail or restaurant “managers” who spend most of their time stocking shelves, running the register, or doing the same work as hourly staff might be owed overtime.

The same goes for technical support or sales employees who are paid a salary but mostly handle routine tasks and work with customers.

How Overtime is Calculated

Overtime is almost always calculated by the week, no matter how often you’re paid—whether it’s biweekly, twice monthly, or monthly. For example, working 35 hours in one week and 45 hours the next week means you’re owed five hours of overtime. And in some states, like California, you might get overtime if you work more than eight hours in a single day.

Your pay rate for those overtime hours is supposed to be 1.5 times your regular rate of pay. Employers often undercalculate overtime by failing to include everything that counts toward your regular rate. Regular rate includes your standard hourly earnings as well as any commissions. Shift differentials also count, as do bonuses awarded for meeting specific targets, such as hitting sales goals or achieving safety standards.

We’re Here to Help

If you’re working long hours without overtime pay, you don’t have to figure it out alone. Whether you’ve been told you’re exempt from overtime or think your paycheck is short, we’re here to help.

Framing the Issue

  • Being misclassified as exempt from overtime requirements can significantly reduce your paycheck. Having a manager label when you don’t really manage the company, could cost you $3,000 per year.
  • Wage theft happens in many kinds of jobs, industries, and employers. But you’re especially at risk if you work in food service, health care, or construction, according to U.S. Department of Labor data.
  • Keeping your own records can help protect your paycheck. Write down your hours, breaks, and any work-related expenses. If something doesn’t look right when you get paid, your notes can help you correct mistakes.

Notable Matters

  • Won a unanimous jury verdict and an $18.7 million settlement against Computer Sciences Corporation for misclassifying 1,000 system administrators as exempt from overtime.
  • Obtained $8.1 million for appliance repair workers in New York and New Jersey, who were allegedly misclassified as overtime exempt.
  • Secured $4.6 million for nearly 600 sales representatives of Odoo, Inc., who were allegedly misclassified as overtime exempt.
  • Recovered $150,000 for Ohio fast food workers who were illegally misclassified as assistant general managers.

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Have you been told you’re ineligible for overtime simply because you’re paid a salary?

If you think you've been paid less than your owed or denied benefits you’re entitled to, we're ready to fight for your rights.

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