Overtime Pay for Salary or Flat-Rate Employees
A common myth in employment law is that employers are not obligated to give overtime pay to salaried or flat-rate workers. Sometimes, employers give their employees a salary when they should be classified as hourly workers. The FLSA does not just take salary/hourly into consideration, but rather the total amount an employee is getting paid. The FLSA also takes into consideration whether the employee’s job duties perform a management function, or involves independent decision-making. If, after further evaluation, an employee does not meet the federal requirements for “exempt” status, then they must be paid overtime.