labor lawAdivision of labor law center

If you are on a salaried payment system, yet work more than 40 hours per week, you may be entitled to overtime payments for the extra hours you work. Many employers and employees alike assume that any salaried employee is exempt from overtime. It is an easy mistake to make, but one that the US Dept of Labor is quick to correct.

It has recently prosecuted and won a judgment against Wal-Mart, regarding their violation of federal and Texas minimum wage laws.

This mainly affects workers such as salaried trainee managers, interns and programmer trainees. Many worked long hours yet received no overtime payments in compensation.

Under the agreement enforced by the US Dept of Labor, Wal-Mart has agreed to pay up to $33 million to employees as back wages, plus the interest incurred. Nearly 87,000 employees throughout Texas and the country are affected by this.

So what conditions must be satisfied to ensure that you get the overtime pay you are entitled to, if you are a salaried employee?

Guidelines suggest that you should earn less than $455 per week, or $23,660 a year.

You must work over 40 hours per week. You are entitled to overtime payment in compensation for any extra hours you work, regardless of being salaried.

If you earn more that the stated amount in the guidelines, you may still be entitled to overtime payments. Overall, to be exempt from receiving overtime payments, a salaried manager must have significant decision-making powers. As a general guide, this should include the hiring or firing of three or more members of staff. If you think you may be entitled to overtime, it is worth finding out more.

The argument against Wal-Mart was that the trainee managers who were required to work over 40 hours per week did not have any decision-making powers, or supervision of employees. Some of the trainees were paid much less than $23,660 per year.

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