Do you make too much money to be entitled to Overtime under the FLSA? Information on the Highly Compensated Workers Exemption.

The Fair Labor Standards Act (FLSA) affects most private and public employment and relates to, among other things, overtime pay and minimum wages. The FLSA requires employers to pay covered non-exempt employees at least the federal minimum wage and overtime pay for all hours worked over 40 in a work week. Covered employees must be paid for all hours worked in a workweek as set forth in the bullet points below.

In general, compensable hours worked include all time an employee is on duty or at a prescribed place of work and any time that an employee is suffered or permitted to work. This generally includes work performed at home, travel time, waiting time, training, and probationary periods.

• Federal Minimum Wage: $7.25 per hour effective July 24, 2009. States, however, may require higher minimum wages. In Ohio, the Minimum Wage is $7.70 per hour effective January 1, 2012.

• Tipped employees may be paid $2.13 per hour; if an employee’s tips combined

• with cash wage does not equal the applicable minimum wage, the employer must make up the difference.

• Overtime after 40 hours in a week = 1 ½ times an employee’s regular rate of pay.

Certain Exempt employees are not covered by the overtime and minimum wage requirements. These exemptions to overtime and minimum wage include Administrative Exemption, Professional Exemption, Executive Exemption, Outside Sales Exemption, and Computer Professional Exemption. The focus of this employment law blog post pertains to the Highly Compensated Worker Exemption. If you answer yes to all the criteria below, you are exempt from overtime and minimum wages under the FLSA.

• 1. You make a total annual compensation of $100,000 or more.

• 2. You annual compensation includes $455 per week paid on a salary basis.

• 3. You primary duties include office or non-manual work.

• 4. You customarily and regularly performs at least one of the exempt duties or responsibilities of an exempt executive, administrative or professional employee. (See Exemption Blog Post for more information on exempt duties and responsibilities under the FLSA.)

For more information on the Highly Compensated Worker Exemption under the FLSA visit the Department of Justice Fact Sheet.

If you believe you are entitled to overtime and minimum wage under the FLSA and you are not receiving it, contact Mansell Law today.