Understanding Wage & Hour Laws
Wage and hour laws help protect workers from unfair treatment in the workplace, in regard to compensation given for time worked. We believe that everyone should have a solid grasp of the law, so they understand their rights in the workplace. Our firm specializes in wage and hour laws, and our attorneys can help you understand what rights you’re entitled to. If you’re feeling confused about what your rights are as a worker, our attorneys have information to help you out.
What are Wage and Hour Laws?
Wage and hour laws are regulations that govern the payment of wages and the hours that employees work. These laws are crafted to guarantee that workers are paid fairly for their time and that they receive compensation for overtime work. They also address issues like minimum wage, recordkeeping, and employee classification.
Minimum Wage
At the most fundamental level, wage and hour laws set a baseline for how much workers must be paid. The Fair Labor Standards Act (FLSA) establishes a federal minimum wage, but many states and localities have set higher minimum wages. If your state or city’s minimum wage is higher than the federal rate of $7.25 per hour, your employer is required to pay you the higher amount.
Overtime Pay
Under the FLSA, most employees are entitled to overtime pay for hours worked beyond 40 in a work week. Overtime must be paid at a rate of at least one and a half times your regular hourly rate. However, some employees are classified as exempt from overtime, such as certain managerial or professional roles. It’s crucial to understand whether your job qualifies as exempt or non-exempt to ensure that you are receiving the correct compensation.
Recordkeeping Requirements
Employers are required by the U.S. Department of Labor (DOL) to keep accurate records of the hours worked and wages paid to their employees. This includes maintaining records of the start and end times of each workday and any breaks taken, as well as total wages earned each pay period. These records are essential if you need to verify your work hours or if you believe there’s been a discrepancy in your pay.
Bonuses, Shift Differentials, and Nondiscretionary Compensation
Additional compensation like attendance bonuses, sign-on bonuses, performance bonuses, and shift differentials are not just workplace perks. Wage and hour laws require this compensation to be factored into your overtime rate when you work more than 40 hours in a work week. This means that if you work overtime in a work week where you earn additional compensation (such as a bonus or shift differential), the additional compensation increases your overtime rate. So, your overtime rate should be more than time and a half.
Breaks and Meal Periods
Wage and hour laws also address breaks and meal periods. While federal law does not require employers to provide breaks or meal periods, many states do. When breaks are provided, they generally must be paid if they are short (e.g., 20 minutes or less). Meal periods, typically longer breaks for meals, may be unpaid if the employee is completely relieved of work duties during this time.
Classification of Employees
Your classification as an employee, whether exempt or non-exempt, significantly impacts your rights under wage and hour laws. Misclassification can lead to improper pay practices. For example, an employee incorrectly classified as exempt may not receive overtime pay that they are entitled to. It’s important to confirm that your job classification accurately reflects your role and responsibilities. For more information and details on which employment positions are exempt or partially exempt from minimum wage and overtime pay regulations, refer to this guide from the Department of Labor.
How to Protect Your Rights
To protect your rights, you need to be well-informed about the wage and hour laws that apply to your specific situation. Understanding both federal and state regulations can help you verify if you are receiving fair treatment. Keeping personal records of hours worked, including start and end times of any breaks, can be valuable if issues arise. Open communication with your employer about any discrepancies in pay or working hours can often resolve problems. If you suspect that your employer is violating wage and hour laws, seeking legal advice may be necessary. An employment law attorney can provide clarity on your rights and options and offer guidance on how to proceed if legal action becomes necessary.
If you have any questions or concerns about your wage or hour rights, don’t hesitate to reach out to Walcheske & Luzi. Our experienced attorneys are ready to assist you with any employment law issues you may face. Contact us today for a consultation or visit our website to learn how we can support you.