Paid on a Salary
Employees Paid on a Salary
Whether a particular worker is eligible for overtime pay depends on the type of work the employee does, rather than how he or she is typically paid. Contrary to popular belief, overtime is not limited to workers who are paid on an hourly basis. A wide variety of employees who earn an annual salary are also entitled to additional pay for overtime hours. If you believe that you've been wrongly denied overtime pay, contact the Chicago Overtime Law Center. Our Chicago overtime lawyers are dedicated to ensuring the fair treatment of workers across the country by providing experienced, aggressive representation services.
The Fair Labor Standards Act is the federal law that sets out minimum standards for overtime and wages. It applies to private employers as well as federal, state, and local governments. Along with a number of state laws, the FLSA requires these employers to pay workers at a higher, overtime rate for all hours worked after 40 in a given week. The overtime rate is typically one-and-a-half times a worker's normal pay rate. An employee who usually makes $15 an hour, for instance, must be paid $22.50 for all overtime hours.
A worker is considered to be paid on a salary when he or she is essentially "guaranteed" a minimum amount of money for each week in which the employee performs any work. Generally, the worker's actual pay does not vary by the total number of hours he or she works (up to 40) and his or her base pay is computed from an annual figure.
In order to be eligible for overtime, a salaried worker must be considered "non-exempt" under the FLSA, an inquiry that focuses largely on the nature of the individual's work. "Exempt" employees - those not eligible for overtime - are generally workers in professional and administrative positions, such as doctors, lawyers, executives, and certain technology workers. Employees in other positions, as well as those paid a salary of less than $23,600 per year ($455 per week), are non-exempt.
Salaried workers can determine their overtime pay rate by first dividing weekly pay by 40 to come up with the hourly rate. Multiply that amount by 1.5 to calculate the rate at which the employee must be paid for all hours worked in excess of 40.
If you have been denied overtime pay to which you believe you are entitled, the FLSA and other laws allow you to sue your employer for unpaid wages and other damages. Often, an overtime dispute can be resolved through negotiation without the need for contentious litigation. It is important to remember that the applicable laws protect employees who sue or otherwise complain about unpaid overtime from retaliation (firing, demotion, etc.).
At the Chicago Overtime Law Center, our Chicago overtime attorneys have decades of combined experience representing workers in wage and hour matters, including overtime claims. Our lawyers aggressively protect clients' rights to the money they've earned, and have successfully represented workers in both federal and state courts. Please contact us online or call (312) 869-4095 to schedule a free and confidential consultation with an overtime lawyer in the Chicago area.