LEGAL Matters
THE BASICS of OVERTIME: Who Gets It, Who Is Exempt, and How Is It Calculated.
T he Department of Labor (“DOL”) increased the minimum salary amount for executive, administrative, and professional employees (“Managers and Administrators”) to be exempt from overtime. The new rule raised numerous questions regarding who is owed overtime pay. Who is exempt form overtime? Must a flooring retailer pay commissioned employees overtime? What about employees paid piece-rate based on the amount of flooring installed? This article will answer these basic questions. 1. Which Employees Get Overtime? The Fair Labor Standards Act (FLSA) establishes the federal standard for minimum wage, overtime pay, and recordkeeping for all full-time and part-time workers. Unless specifically exempted, as explained below, most employees must be paid at least the minimum wage and not less than one and one-half times their regular rates of pay for hours worked beyond 40 per week. 2. Are Independent Subcontractor Owed Overtime? A flooring retailer that subcontracts installation of flooring to independent contractors do not have to pay overtime to these subcontractors. These independent contractors are not employees and therefore the flooring retailer does not owe them overtime. It is important, however, to make sure the subcontractors meet the independent contractor standards. If these installers are, in fact, employees, the flooring retailer will owe them overtime and other employee benefits.
Jeffrey W. King General Counsel for the WFCA Jeffrey King has more than 35 years’ experience in complex litigation with a focus on contracts, employment, construction, antitrust, intellectual property and health care. He serves as legal counsel for WFCA and other trade associations, and is a LEED Accredited
Professional. (561) 278-0035 jeffw@jkingesq.com.
“ Paying an
employee a salary does not automatically exempt them from overtime.”
18 Premier Flooring Retailer D3 | 2024
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