Avoiding Wage and Hour Disputes: Our Hoffman Estates Lawyers Discuss the Fair Labor Standards Act
Employers must compensate employees according to state and federal employment laws. Under the Fair Labor Standards Act, most employees are entitled to overtime pay equivalent to one and a half times their normal rate of pay for all hours worked above a regular 40-hour workweek. The FLSA also establishes a minimum wage of $7.25 per hour, which has been the rate since July 24, 2009. Failure to properly compensate employees often leads to wage and hour disputes, which can be costly and time-consuming to resolve. If you are currently involved in a wage and hour dispute with an employer or employee, an experienced Hoffman Estates attorney can help you achieve swift resolution.
FLSA Overtime Pay
Employees are entitled to overtime pay unless they meet certain qualifications that exempt them from FLSA overtime provisions. An employee’s status as exempt or nonexempt depends on whether the employee receives a set salary and the nature of his or her work. To be considered exempt, an employee must receive a salary of at least $455 per week, and his or her primary duties must fall into one of the following categories:
Executive: Oversees business operations or manages a department or division, supervises at least two employees, and has the authority to hire, fire and promote
Administrative: Performs non-manual labor that is directly related to business operations and has the authority to exercise independent thought and discretion
Professional: Possesses advanced knowledge in a field of science or learning, such as a doctor, lawyer or professor, or works in a recognized field of artistic or creative endeavor
- Outside sales: Makes sales away from the physical location of the business
Certain other employees may also be exempt from federal overtime laws. Some employers mistakenly believe all salaried employees are automatically exempt from overtime pay, but it depends on the type of work they do. Misclassifying employees as exempt — intentionally or unintentionally — can lead to costly wage and hour lawsuits. To ensure you are compensating employees in accordance with the law, contact a qualified Hoffman Estates lawyer today.
Unless employees meet certain qualifications that exempt them from FLSA minimum wage requirements, they must receive at least $7.25 per hour. Failure to pay nonexempt employees the federal minimum wage can lead to costly lawsuits. Additionally, some states require a higher minimum wage than the rate established under FLSA. In Illinois, for example, the minimum wage for non-tipped employees ages 18 and older is $8.25 per hour, and the optional rate for tipped employees is $4.65 per hour. A knowledgeable Hoffman Estates attorney can explain federal and state minimum wage laws and explain how they apply to your employees.