If you work more than 40 hours in a single workweek, you may be entitled to overtime pay—typically 1.5 times your regular hourly rate for every hour worked beyond 40. However, not all employees qualify. The distinction lies between exempt and non-exempt employees under the Fair Labor Standards Act (FLSA), and understanding that difference is key.
If you’re unsure about your classification—or believe you’ve been misclassified or underpaid—consulting with a qualified Philadelphia employment lawyer can help protect your rights.
The primary distinction is that non-exempt workers are entitled to federal overtime protections under the FLSA. In contrast, exempt employees are not eligible for overtime, based on their salary level, payment structure, and job duties.
Exempt Employees:
- Usually salaried.
- Earn at least $844/week (as of July 1, 2024, under new DOL rules).
- Work in executive, administrative, professional, or computer-related roles.
- Must pass the FLSA’s “duties test” in addition to salary thresholds.
Non-Exempt Employees:
- Typically, hourly workers or salaried employees earning below the DOL’s minimum threshold.
- Entitled to overtime pay for hours worked over 40 per week.
- If salaried, overtime is calculated by dividing total compensation by total hours worked to find the regular rate.
Pennsylvania follows federal FLSA standards for most wage and hour laws, including overtime, but some city-specific rules (like Philadelphia’s Fair Workweek Law) may offer additional protections in certain industries, such as fast food and retail.
What Happens if You’re Misclassified?
When employers misclassify employees as exempt—whether by mistake or intentionally—they may avoid paying overtime unlawfully, leading to:
- Fines and penalties
- Wage and hour lawsuits
- Backpay liability
- DOL audits and enforcement actions
Keeping accurate records of your hours, pay stubs, and job duties can support your claim if you believe you’ve been misclassified.
Who Is Typically Exempt from Overtime?
According to the FLSA and Department of Labor guidelines, the following job categories may qualify as exempt if they meet both salary and duties tests:
1. Executive Employees
- Primary duty is managing two or more full-time employees.
- Authority to hire, fire, or recommend employment actions.
- Paid a salary, not hourly.
- Spend no more than 20% of time on non-managerial tasks.
2. Administrative Employees
- Perform office or non-manual work directly related to management or business operations.
- Exercise discretion and independent judgment on significant matters.
- Support executives or perform specialized duties.
- Paid on a salary basis and work mostly in administrative functions.
3. Professional Employees
- Jobs require advanced education or specialized knowledge.
- Often includes lawyers, doctors, engineers, teachers, and creatives.
- Also includes computer professionals involved in software engineering, programming, or system analysis.
- Paid a salary and spend most time on intellectual or creative work.
4. Other Exemptions
Some positions are specifically excluded from overtime, including:
- Outside sales personnel.
- Certain motor vehicle sales professionals.
- Part-time babysitters or domestic companions.
- Students employed by their university.
- Employees at non-profit camps or religious retreats.
What If You Think You’ve Been Misclassified?
- Speak to HR or your manager. Sometimes the issue is administrative and can be resolved internally.
- Keep records. Track your hours, pay, job responsibilities, and any communication about your classification.
- Seek legal advice. If your employer refuses to properly classify you or pay you the owed overtime, you may have grounds for a wage and hour claim.
Philadelphia Employment Lawyers at The Gold Law Firm P.C. Advocate for Workers in Wage and Hour Disputes
If you believe your employer has misclassified you or failed to pay you overtime, the Philadelphia employment lawyers at The Gold Law Firm P.C. can help. We’ll assess your employment classification, evaluate your potential damages, and fight for the full compensation you deserve. Call us today at 215-569-1999 or contact us online to schedule your free consultation. Located in Philadelphia and Pennsauken, New Jersey, we serve clients in South Jersey and Southeastern Pennsylvania, including Wilkes-Barre, Scranton, Northeast Philadelphia, Bucks County, Chester County, Delaware County, Lehigh County, Montgomery County, and Cherry Hill.
