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Wyoming Overtime Violations

May 31st, 2007 Posted by Amelia

Many employers assume that all salaried employees are exempt from overtime – but they are mistaken. Depending upon the rate of pay and job duties, employees in Wyoming who are paid on a salaried basis may still be entitled to time-and-a-half for every hour they work beyond 40 hours per week.

In Wyoming, a recently settled lawsuit involving violations of federal and Wyoming minimum wage laws will cost Wal-Mart $33 million. This money is back pay and interest that Wal-Mart will pay to almost 87,000 workers. These workers reside in Wyoming and throughout the United States.

The suit was brought against Wal-Mart by the U.S. Department of Labor. It refers only to certain violations and doesn’t impact any private lawsuits against the corporate giant. Moreover, this recent settlement doesn’t impact the ability of workers to file their complaints with the U.S. Department of Labor.

To determine if federal and Wyoming minimum wage laws make a salaried employee eligible for overtime pay, consider their salary. If employees earn under $455 a week ($23,660 a year), then the guidelines created in recent years state that they are entitled to overtime compensation for hours worked above 40 per week.

In fact, an employee can earn more than $23,600 per year and still be eligible for overtime pay. The determining factor is whether the employee has the power to make significant decisions concerning a division, a department, or a store. Usually, managers who are paid a salary have the authority to hire and fire 3 or more employees.

Wal-Mart has encountered problems with their payroll system before. Private litigation isn’t impacted by this agreement, since it only addresses those violations that were outlined in the judgment.

Other companies have tried not paying overtime before. Over 20 years ago, Howard Johnson’s tired a similar approach but was unsuccessful. In a similar situation to Wal-Mart’s, Howard Johnson’s employed “assistant managers.” These employees worked in the company’s restaurants, sometimes putting in more than 80 hours a week without much pay. Like Wal-Mart, Howard Johnson’s was found guilty.