Wage and hour claims, including overtime claims, are governed by the Fair Labor Standards Act (FLSA). This law requires employers to pay one and a half times regular pay (often called “time and a half”) for every hour over forty worked in a week.

The main exception to this rule is for employees characterized as "exempt" – typically executive, professional and administrative employees who are paid a fixed salary. However, employers will sometimes misclassify employees as “exempt” when in fact they should be eligible for overtime. Thus, even if an employee is classified as "exempt" and receives a fixed salary, overtime claims can be pursued if the employee actually does not perform in an executive, professional or administrative role.

The FLSA looks at the level of discretion and independent judgment exercised by employees in determining whether they are exempt. Employees who provide the services or produce the product that a business sells, or who work in a relatively controlled context rather than administering the employer's policies or general business operations, may be entitled to overtime regardless of how the employer labels them.

A successful overtime claim entitles employees to time and a half pay for every hour worked over forty in a week for the prior two years from when the claim is filed. If you believe that you may have an FLSA claim, please contact us.