In this four part series, attorney, Nicholas Porto, explains employee management issues that need to always be on your radar. They include: how to handle on call time, overtime requirements, employment records and independent contractors. In this second post, Porto will discuss overtime pay requirements. (Check out Porto’s first post here.)
Many companies operate businesses that require employees to work more than the regular 40-hours per week. Below, Porto will discuss what your business needs to know about overtime pay requirements. There are two steps in defining how you must compensate employees for overtime work. First, determine if your business is protected by the Fair Labor Standards Act. Any business that has sales or receipts in the amount of $500,000 or more is protected, but state laws still apply as well. Second, you must determine if your employees are exempt or non-exempt workers.
There are different types of exempt workers depending on the industry and employees must meet the following requirements.
Executive Exemption: Compensated on a salary basis at a rate not less than $455 per week, management employee and authority to hire/fire.
Service Exemption: Must be employed by a retail or service establishment, makes at least minimum wage and paid at least half in commissions.
Motor Carrier Exemption: Must be employed by a motor carrier, employee’s duties affect the safety of operation of motor vehicles in transportation on public highways in interstate or foreign commerce and not covered by the small vehicle exception.
Small Vehicle Exemption: Overtime must still be paid to employees who perform duties on vehicles weighing 10,000 pounds or less and light duty service trucks weighing 10,000 pounds or less. Remember though, the Motor Carrier exemption does not apply to employees not engaged in “safety affecting activities.”
Determining if an employee meets an exemption status can be tricky and If you have questions on how you are keeping employee records and/or classifying emails please ask your attorney.
About the Porto Law Firm
The Porto Law Firm was founded in 2011 with a vision of providing uncompromised legal advocacy to businesses and individuals in a cost effective manner. Each client is provided constant access to their attorney and we are proud that most of our clients turn into our closest friends. Its current practice areas include general civil litigation, real estate law and disputes, business litigation and formation, and personal injury. In addition, the Porto Law Firm has developed a national reputation for our breadth of knowledge in legal issues specific to the towing and transportation industry.