As a successful business owner, you might have employees, and those employees work hard. They are productive and put in long hours to make sure your operation is running smoothly. You want to keep them happy and productive, as well as being in compliance with the applicable labor laws. One common oversight among even the best employers is overtime pay. What is overtime pay, and why should you pay it?
If you have employees and have overtime issues to sort through, Weisblatt Law Firm has solutions. Call (713) 666-1981 for a complimentary phone consultation or to schedule a consultation at our office.
The Fair Labor Standards Act
The federal law that governs overtime pay is the Fair Labor Standards Act (FLSA). The FLSA requires that any non-exempt employee that works more than 40 hours per week shall get paid time-and-a-half for any time worked more than 40 hours in that week. The FLSA applies in the State of Texas and, therefore, Houston-area employers must comply with this statute. The characterization of employees as exempt or non-exempt is very nuanced, and it is best to speak with a business attorney at Weisblatt Law Firm, LLC before making that determination. Until you speak with an attorney, it is best to proceed with caution as to the payment of overtime.
Who Is an Exempt Employee?
Various occupations are exempt from overtime payment requirements. Employers in these businesses do well to identify any exempt employees in their company and prevent them from receiving overtime.
Exempt occupations under the FLSA include:
- Seamen
- Motor carriers
- First responders and emergency response personnel
- Car salespersons
- Railway workers
- Certain retail and service workers.
Bona fide executive, administrative, or professional workers are also exempt from overtime payment requirements. However, simply calling a worker an executive does not lead to an automatic exemption from overtime payment for that worker. To qualify for an executive exemption, the worker must:
- Receive a minimum weekly salary based on FLSA requirements
- Have as their primary duty the management of the company or its subdivisions
- Direct or supervise the work of two or more employees on a regular basis
- Have hiring and firing authority or have influence in such processes.
When it comes to exemptions for professional workers, there are three categories of professional workers: learned, creative, and teaching. As the name implies, learned professionals are those who must use advanced scientific or intellectual knowledge. For creative professionals, the work must involve invention, imagination, or talent in recognized fields and endeavors. Finally, teaching professionals must engage in teaching, tutoring, or lecturing duties at an educational institution.
Other exempt workers include certain highly compensated professional workers who make over $100,000 per year as well as certain computer-related industry workers. Software engineers, computer system analysts, and computer programmers qualify for an exemption if they meet certain salary and job description requirements.
Penalties for Not Complying With the FLSA
If you, as an employer, do not comply with the FLSA by failing to pay time-and-a-half for overtime, then you are subjecting yourself to many harsh penalties, including:
- Payment for two to three years of unpaid overtime pay
- Statutory damages for noncompliance
- Payment of your employee’s attorney’s fees and court expenses
- Other damages.
Not to mention that you will also need to retain legal counsel to defend against any lawsuits brought under the FLSA. Needless to say, this will be much more costly than simply paying the overtime as required by law.
Weisblatt Law Firm develops effective solutions to clients’ unique problems and never uses cookie-cutter guidance.
What Should You Do if You Have Not Been Paying Overtime
If you are a business owner who has not been paying employees overtime but should have been, it is imperative that you speak with an attorney at Weisblatt Law Firm, LLC today. These errors can be corrected with disclosure, compensation, and waivers, but it is a difficult negotiation that is best handled by attorneys rather than the business owner personally. Under no circumstance is it advisable to ignore the problem or sweep it under the rug.
Call The Houston Business Law Attorney at Weisblatt Law Firm, LLC, Today
If you are an employer in the Houston area, make sure you are in compliance with the FLSA’s overtime laws. The penalties for noncompliance are high, and the difficulties associated with correcting noncompliance are plenty. The Houston attorneys at Weisblatt Law Firm, LLC, can review your records for FLSA compliance, and, if you are not in compliance, they can assist you in obtaining compliance and heading off any possible costly lawsuits against your business.
Call (713) 666-1981 for a free consultation over the phone. You can also schedule an in-person consultation and case review. Our team is ready to help resolve your issues. Call Weisblatt Law Firm today.
Attorney Andrew Weisblatt
Mr. Weisblatt has practiced continuously since becoming licensed in 1992 and has represented businesses ranging in size from one person start-up ventures to multi-national corporations employing hundreds of people in multiple countries. From 2005 through 2009 Mr. Weisblatt was in-house counsel and chief operating officer of a multi-national corporation in the steel products industry. That in-house position provided valuable insight into how businesses work and what they actually need from their lawyers – both in-house and outside counsel. Attorney Bio
