Overtime laws ensure fair compensation for work beyond standard hours and protect against potential legal disputes. Compliance with these laws is not just a legal requirement but also a matter of ethical business practice, fostering a fair workplace environment.
At Kent, Beatty & Gordon (KB&G), our employment law group is dedicated to helping clients navigate the complexities of New York’s overtime requirements. We offer comprehensive legal guidance, from ensuring compliance to addressing disputes. Employers can confidently manage their obligations with our guidance, while employees can understand and assert their rights.
What You Should Know About Overtime
Both federal and state laws govern overtime, each with distinct requirements. Federally, the Fair Labor Standards Act (FLSA) mandates that non-exempt employees receive overtime pay at one and a half times their regular pay for hours worked over 40 in a workweek. This law sets the minimum standard, but states can impose stricter rules.
In New York, overtime laws mirror federal standards but have additional nuances. Certain industries may have specific overtime provisions, and the state defines exempt and non-exempt employees with particular criteria. New York also requires employers to adhere to stricter record-keeping and wage reporting practices.
KB&G is well-versed in navigating these complexities, providing clear and precise legal guidance to help clients meet their federal and New York law obligations.
Who Is Eligibile?
Eligibility for overtime pay primarily depends on whether an employee is classified as exempt or non-exempt.
- Non-exempt employees are generally entitled to overtime pay for hours beyond the standard 40-hour workweek. These employees typically perform duties that do not require advanced knowledge or decision-making authority and are often paid hourly.
- Exempt employees, conversely, are not eligible for overtime pay. This category includes employees who perform executive, administrative, or professional duties. These roles usually involve decision-making responsibilities, specialized knowledge, and a higher level of autonomy. Additionally, exempt employees often receive a fixed salary rather than hourly wages.
In New York, specific criteria must be met for an employee to be classified as exempt, including salary thresholds and job duty requirements. Employers must classify their employees correctly to avoid potential legal disputes. At KB&G, we assist clients in navigating these classifications, ensuring compliance with both state and federal laws.
How Is Overtime Pay Calculated?
Calculating overtime pay involves determining the correct pay rate for hours worked beyond the standard workweek. Under federal law and New York regulations, non-exempt employees are entitled to overtime pay at one and a half times their regular hourly rate for any hours worked over 40 in a workweek.
To calculate overtime pay:
- Determine the regular pay rate: This includes all forms of compensation, such as hourly wages, salaries, commissions, and certain bonuses, divided by the total hours worked.
- Calculate the overtime rate: Multiply the regular rate by 1.5.
- Apply the overtime rate to hours worked over 40: For example, if an employee’s regular rate is $20 per hour, their overtime rate would be $30 per hour.
Our firm provides guidance on these calculations, ensuring employers meet their obligations and employees receive their rightful compensation.
Employer Obligations and Compliance
Employers have several obligations under New York and federal overtime laws to ensure compliance and avoid legal issues. Key responsibilities include:
- Accurate Record-Keeping: Employers must maintain detailed records of employees’ work hours, wages, and overtime payments. This includes keeping timecards, work schedules, and payroll records for a specified period.
- Timely Payment: Overtime pay must be included in the employee’s next regular paycheck. Delays or failures to pay overtime can lead to penalties.
- Proper Classification: Employers must correctly classify employees as exempt or non-exempt. Misclassification can result in unpaid overtime and potential legal action.
At KB&G, we assist employers in understanding and fulfilling these obligations, guiding them on best practices and compliance strategies to mitigate risks and ensure adherence to labor laws.
Protecting Employee Rights To Overtime Pay
Employees are entitled to fair compensation for all hours worked, including overtime. In New York, non-exempt employees must be paid one and a half times their regular rate for any hours worked over 40 in a workweek. Employees also have the right to be informed of their wage rates and to receive proper documentation of their hours and pay.
Employees who believe they are not receiving the overtime pay they are entitled to can seek legal assistance. An experienced attorney can help by reviewing pay records, identifying potential violations, and advising on the best course of action. At KB&G, our attorneys advocate for employees’ rights, ensuring they receive the compensation they deserve and assisting with disputes.
Protecting Your Rights in Overtime Matters
Whether you need assistance with compliance or are facing a dispute over unpaid wages, KB&G is here to help. Contact us today to ensure your rights and legal needs are protected.