What Types Of Employees Are Entitled To Overtime Pay?

What Types Of Employees Are Entitled To Overtime Pay

Employees in New Jersey and Pennsylvania are categorized as exempt or non-exempt. Those who are exempt are workers who are not legally entitled to overtime because of their job duties. The overtime pay definition is a premium of 1.5 times the worker’s standard hourly pay for all hours that he or she works beyond 40 in a week. Non-exempt workers have jobs that do not fall under an exemption allowed under the FLSA, making them eligible for the overtime premium. The exemptions that are allowed under the Fair Labor Standards Act are narrow, and the employer holds the burden to prove that a class of employees or an individual worker is not entitled to receive the overtime premium. The U.S. Department of Labor uses several tests in order to determine whether or not an employee’s job duties fall under an exemption. The employment law attorneys at Swartz Swidler may help workers who have been misclassified to recover back overtime pay that they should have received.

Executive exemption

Workers who meet the executive employee exemption must meet the following tests:

  • Must have a weekly salary of at least $455 per week;
  • The primary duty must be managing the company, a department or a subdivision;
  • The worker must regularly and customarily direct or supervise the work of at least two other full-time workers; and
  • The employee must be authorized to fire or hire other workers, or he or she must be able to make recommendations about the hiring, firing, promotion, advancement or other status changes of others.

Administrative exemption

People who are classified as exempt administrative employees must meet the following tests:

  • Must have a weekly salary of at least $455 per week;
  • Must have the primary duty of performing non-manual or office work related to the general business operations or the management of his or her employer or the employer’s customers; and
  • The primary job duty must include the ability to exercise independent judgment and discretion in regards to important business matters.

Professional exemption

Professional employees must meet the following tests to fall under this exemption:

  • Must earn a salary of at least $455 per week;
  • The worker’s primary job duty must involve performing work that requires advanced knowledge, which is predominantly intellectual and which requires the exercise of judgment and discretion;
  • The job must be in a field of learning or science; and
  • The knowledge must have been acquired through the completion of a long course of specialized instruction.

Creative professional exemption

  • In order for a worker to be classified as a creative profession, all of these tests must be met:
  • Must earn a minimum weekly salary of $455; and
  • The primary job duty must be performing work that requires talent, originality, imagination or invention in a creative or artistic field that is recognized.

Computer employee exemption

To qualify for an exemption under this category, the following tests must be met:

  • Must earn a minimum weekly salary of $455, or a minimum of $27.63 per hour if compensated hourly;
  • Must be employed as a computer programmer, systems analyst, computer engineer or other skilled position in the field;

The primary duty must consist of:

  • The creation, analysis, documentation, development, design, modification or testing of computer programs or systems;
  • The modification, creation, testing, documentation or design of programs related to machine operation systems; or
  • A combination of these duties requiring the same skill level.

Outside sales exemption

In order to qualify for this exemption, the following tests must be met:

  • The primary job duty must be to make sales or to obtain contracts or orders for services for which money will be paid by the customer; and
  • The worker must be regularly engaged in work away from the place of business.

Highly compensated employees

To qualify under this exemption category, an employee must be engaged in performing non-manual or office work and receive a minimum annual salary of $100,000 or more, which must include at least $455 that is paid on a fee or salary basis per week. These employees must also regularly perform at least one of the duties of a professional, administrative or executive exempt employee.

Blue collar workers

Blue collar workers who perform work requiring repetitive hand movements, physical labor and energy do not have the white collar employee exemptions applied to them. People holding non-management jobs as laborers, construction workers, longshoremen, carpenters, maintenance workers and production workers are entitled to overtime pay and minimum wage under the FLSA and are non-exempt.

Collective bargaining agreements

The minimum standards provided by the FLSA cannot be reduced or waived, and they can be exceeded. Employers are allowed to offer higher wages, shorter workweeks or higher overtime pay to their non-exempt and exempt employees either if they choose to do so on their own or if they do so under a collective bargaining agreement.

Contact Our Attorneys

If you believe that you have been misclassified as an exempt employee, you may need legal help. Contact the attorneys at Swartz Swidler to learn whether your employer may have violated the overtime pay laws.