Some employers believe they can avoid paying employees for overtime, but doing so may come at a greater cost. Employers need to understand when their employees are owed overtime pay according to the law. Here is what you need to know:
Overtime Exemptions in Massachusetts law
Under the Fair Labor Standards Act, “white-collar” salary-based employees who earn more than $455 per week are exempt from overtime pay. Certain types of employees classified as Executive, Administrative, Professional or Outside Sales capacity are also exempt from overtime pay. In order to determine the true exemption, an employee must pass three tests: The Salary Level Test, Salary Basis Test, and Job Duties Test. Some employers use the exemption clause to avoid paying overtime, but you may be breaking the law if indeed your employee qualifies for overtime wages regardless of whether you've had them sign an employment agreement that waives their right to receive overtime wages.
Demystifying the Wage & Labor Cloud
With all of the complex laws within the Department of Labor, employers need to know the law. Even an innocent mistake could cost you much more then it would cost to hire an experienced employment attorney. Contacting an attorney is perhaps the best step to get answers to your questions and keep your company on track. Here at the Katz Law Group, we know the law. Call us at 508-480-8202.