Wage & Hour Claims
While many companies comply with the wage and overtime laws, others routinely violate laws protecting the wage and overtime rights of hard-working American workers like you. No one should work for free.
Miscalculation of Work Time & Overtime Pay
Some (but not nearly all) of the common violations include: “rounding” employees’ clock-in and clock-out times in a manner that always benefits the company; avoiding overtime pay by splitting the week’s hours into separate paychecks; using a “comp time” system to shift overtime hours from the week worked into a sub-40 hour week; basing time-and-one-half overtime pay on a pay rate that does not include commissions, bonuses, or shift differentials; paying salaried employees “half-time” for their overtime work; calculating time-and-one-half overtime based on the week’s lowest pay rate; failing to combine hours worked at different pay rates in determining whether 40 hours were worked.
What About Employees Not Paid by the Hour?
Many workers paid by the job, by the day, or by commission think they are not entitled to overtime pay just because they are not paid on an “hourly” basis. This is wrong. In fact, millions of employees paid on a job-rate, day-rate, or commissioned basis are entitled to extra overtime pay when they work over 40 hours in a week.
What is "Off-the-Clock" Work?
Some companies fail to give payroll credit for all the time in which employees are engaged in activities that benefit the company. Such “off-the-clock” work is usually illegal even if the work was “voluntarily.”
Some common examples of illegal “off-the-clock” work include:
- Time spent traveling between clients
- Time spent in training or pre-shift meetings
- Time spent working during lunch or rest breaks
- Time spent “charting” or doing paperwork outside of the workplace
- Time spent gathering gear or equipment at the beginning of the workday
- Time spent setting-up, cleaning, or closing-down at the beginning or end of the workday
Employment Lawyers for Salaried Employees in Philadelphia
Many employees mistakenly believe they are not entitled to overtime pay just because they are paid a salary, but this is wrong. In fact, millions of salaried employees are entitled to extra overtime pay when they work over 40 hours per week.
What is a Salaried Employee?
According to the U.S Department of Labor, Employees with salaried jobs regularly receive a set amount of compensation every pay period. The amount cannot be reduced based on the quality or quantity of the work completed by the employee.
What Does Salary Exempt vs. Salary Non-Exempt Mean?
Exempt and non-exempt are terms used to classify employees under the Fair Labor Standards Act (FLSA) in the United States. The FLSA is a federal law that regulates minimum wage, overtime pay, and other employment standards for both exempt and non-exempt employees.
- Exempt: Exempt employees are typically salaried workers who are exempt from receiving overtime pay, meaning they do not receive additional pay for working more than 40 hours per week. Exempt employees are generally professional, administrative, or executive employees who perform certain types of duties, such as managing other employees, exercising independent judgment, or performing work that requires advanced knowledge or specialized skills. Examples of exempt employees may include doctors, lawyers, managers, and IT professionals.
- Non-Exempt: Non-exempt employees are typically paid an hourly wage and must be paid overtime at a rate of one and a half times their regular pay for any hours worked over 40 hours per week. Non-exempt employees are typically considered to be blue-collar or manual labor workers who perform relatively routine work that is subject to oversight and direction by management. Examples of non-exempt employees may include retail workers, food service employees, and administrative support staff.
It's important for employers to properly classify their employees as exempt or non-exempt, as misclassification can result in legal and financial consequences. If you're unsure about your classification or if you believe you have been misclassified, speak with an employment law attorney for guidance.
Overtime Laws for Salaried Employees
In addition, even when companies pay overtime to salaried employees, they often cheat their employees by miscalculating the amount of overtime owed. In Pennsylvania, salaried employees who are eligible for overtime must receive full “time-and-one-half” pay for every overtime hour. For example, an employee earning a $500 weekly salary should receive an extra $30 [($500 / 40) X 1.5] for every hour worked over 40. Yet, many employers violate the law by using a “half-time” method to calculate the overtime owed to salaried employees.
Salaried Employee Case Results in Pennsylvania & Nationwide
Our firm has had great success in representing salaried employees who either were treated as “exempt” from the overtime laws or had their overtime pay miscalculated.
- $20.9 million for salaried assistant store managers who were classified as overtime exempt by a national drug store chain
- $11.5 million for salaried assistant branch managers who were classified as overtime exempt by a large retail bank
- $8 million for Pennsylvania and Ohio retail assistant department managers who received half-time pay instead of full time-and-one-half pay
- $4.5 million for salaried department managers employed at a multi-site grocery store chain and paid half-time for their overtime work
- $2.3 million for salaried store managers working at a chain of Colorado discount stores and classified as overtime exempt
- $75,000 for salaried mentors who were classified as overtime exempt by a Philadelphia social services agency
- $627,500 for salaried account managers who worked in Pennsylvania and were classified as overtime exempt by a company that provided custodial services to nursing homes
- $400,000 for salaried field service managers classified as overtime exempt by a national automotive inventory control company
- $500,000 for retail store managers who worked in Pennsylvania and only received half-time pay for their overtime work
- $311,000 for a group of salaried retail employees who held various job titles and only received half-time pay for their overtime work
- $490,000 for salaried service representatives who worked in Pennsylvania for a large lawn care company and only received half-time pay for their overtime work
- $505,000 for assistant branch managers classified as overtime exempt and working for a Pennsylvania bank
- $575,000 for retail assistant managers who worked in Pennsylvania and only received half-time pay for their overtime work
- $110,000 for salaried convenience store managers and assistant store managers who worked in Northeastern Pennsylvania and only received half-time pay for their overtime work
- $87,500 for salaried intensive care managers who worked for a Pennsylvania/Delaware mental health provider and were treated as overtime exempt
- $66,000 to salaried case managers who were treated as overtime exempt by a Philadelphia behavioral health provider
- $489,000 for salaried implementation consultants who were classified as overtime exempt by a New York business software company
- $85,000 to salaried admissions representatives who were treated as overtime exempt by a Southeastern Pennsylvania trade school
- $300,000 for Store managers and assistant store managers employed in Pennsylvania by a chain of discount shoe stores and only paid half-time for their overtime work
EMPLOYMENT LAWYERS FOR HOURLY EMPLOYEES IN PHILADELPHIA
Many hourly employees do not receive credit for all the time they spend working for their company. Sometimes, this is called working “off the clock.” Working “off the clock” is often illegal. Under federal and state wage laws, employees are entitled to be paid for many pre-shift and post-shift activities, which can include time spent in security screening lines, time spent walking to assigned locations within the plant or job site, time spent gathering work-related gear and equipment, time spent waiting for job assignments, time spent traveling out-of-town, time spent traveling between job sites or clients, time spent by call center employees logging into computer programs, and time spent in breaks of less than 20 minutes.
In addition, employees generally are entitled to be paid for work performed during unpaid lunch or meal breaks. Under the law, employees must be completely relieved of duties when they are on an unpaid lunch or meal break. Companies generally are required to pay employees for all the time they spend performing activities that benefit the company. Our law firm has recovered millions of dollars for hourly employees who perform work “off-the-clock.”