Mistakes in overtime pay can deprive you of hard-earned wages. Understanding common errors, your rights under wage and hour law, and how to address discrepancies is essential to ensuring you are paid the wages you are owed. At Nichols Kaster PLLP, we help employees fight for accurate pay and fair treatment. Read on to learn how to identify and resolve overtime pay errors effectively.
Understanding Overtime Pay Errors in Your Paycheck
Overtime Pay Regulations and Laws
Overtime pay under federal law is governed by the Fair Labor Standards Act (FLSA), which requires non-exempt employees to be paid one and one-half times their regular rate of pay for hours worked beyond 40 in a workweek. Many states also have their own overtime laws, which may differ from the federal law.
Certain kinds of employees may not be entitled to overtime (e.g., those paid a salary at a certain level and who have certain job duties that make them exempt from overtime pay). However, employers routinely misclassify employees who do not meet those requirements and this can lead to wrongful denial of overtime pay. Knowing whether you're properly classified as exempt or non-exempt can help ensure you understand your rights and protections under wage and hour law.
Misconceptions that Being Salaried Means No Overtime Pay
Misconceptions about who qualifies for overtime often lead to confusion. While many believe salaried workers are not eligible for overtime pay, salaried employees should ensure that their pay structure and job duties meet the criteria for at least one of the FLSA’s exemptions. Employees should evaluate their role and pay in line with FLSA guidelines to avoid errors, ensuring they aren't unfairly excluded from overtime pay. Understanding these nuances is key to protecting your rights. The team at Nichols Kaster PLLP is knowledgeable about which pay structures and job duties are exempt from overtime pay.
Common Overtime Pay Errors
Impact of Payroll Software and Manual Errors
For hourly workers, even the most advanced payroll software can make errors. System glitches are common, such as failing to log overtime hours or applying the wrong pay rate. Manual entry errors, often caused by inadequate training or oversight, further exacerbate the problem. Employers must ensure their payroll systems are regularly audited to prevent these mistakes and employees must review their time and pay data carefully for potential errors.
Overtime Rate Miscalculations
Errors often occur when calculating overtime pay, especially if bonuses or shift differentials are not factored in. For instance, non-discretionary performance bonuses, commissions, differentials, or other types of incentive pay should typically be included in the overtime rate, but employers may overlook these adjustments. Incorrect calculations can result in underpayment and violations of wage laws.
Spotting Overtime Pay Errors in Your Paycheck
Analyzing Your Pay Stub: Key Indicators of Errors
Your pay stub holds vital clues to uncovering overtime pay errors. Confirm that recorded hours match your records, verify rates applied to overtime hours, and ensure all applicable bonuses and other forms non-discretionary compensation are included. Consistent analysis of your pay stubs can reveal discrepancies before they grow more significant.
Addressing Overtime Pay Errors
Steps to Take When Identifying Errors
If you find errors, gather pay stubs, timesheets, emails, or documents discussing your hours and wages. Report the discrepancies promptly to your HR or payroll department and document these communications. If the issue remains unresolved, further steps may be necessary.
- Confirm discrepancies with accurate records.
- Report errors to HR or payroll promptly.
- Escalate unresolved issues to legal or regulatory support.
Legal Options and When to Consult an Attorney
Consulting an employment attorney is critical if employers fail to correct payroll errors, and/or you believe you have been denied proper wages. Legal professionals can assess whether your issue violates wage and hour law and help you take appropriate action.. With experienced guidance, you can help ensure your rights and wages are protected.
Overtime Pay Errors Help in Minnesota
If you’ve experienced overtime pay errors, believe you may have been misclassified as exempt from overtime pay, or if you experienced other violations of wage and hour law, the team at Nichols Kaster PLLP is ready to help. Our knowledgeable attorneys fight for employee rights, ensuring fair treatment and fair compensation. Contact us today through our online contact form or call (877) 344-4628 to discuss your potential claims with our team. We’re here to help you secure the pay you deserve.