In simple terms, when employees, whether salaried or hourly, work more than 40 hours per week or 12 hours per day, federal and Colorado overtime laws mandate that they be paid at a rate of one and a half times their regular hourly pay.
This regular hourly rate must not be lower than $8.00 (for 2014) and is calculated by dividing the total weekly pay, including bonuses and shift pay, by 40 hours.
Overtime compensation must be in the form of cash and not as “comp time,” meaning employers cannot offer extra time off instead of paying overtime wages. In summary, federal and Colorado overtime laws ensure that employees receive proper compensation for working beyond their standard hours.
Exempt Employees
An important exception to overtime pay rules are known as “exempt” employees. Being on a salary or labeled as exempt by an employer doesn’t automatically exclude someone from overtime pay. For most employees to be exempt, they must meet two conditions:
1) being paid on a salary basis
2) working in an executive, administrative, or professional role
Determining exemption can be complex, but generally, it applies to those who manage at least two other employees, oversee a significant part of the business, or are professionals like doctors, lawyers, or teachers.
Consequently, many high-salaried “white-collar” workers mistakenly believe they are not eligible for overtime pay. Remember, exemption status is not a given and depends on specific job duties and pay structures.
There has been significant legal debate surrounding the obligation to pay overtime for various types of employees, including:
- Claim representatives
- Leasing consultants/leasing specialists
- Telecommuters
- Assistant managers and shift supervisors
- Pharmaceutical representatives
- Customer service employees
- Salespersons
- Professional drivers
- Loan officers
- Independent contractors
- Paralegals
- IT professionals and help desk operators
- Bookkeepers and accounting clerks
- Cable installers
- Construction supervisors and project superintendents
- Loss prevention managers
- Call center employees
- Field service technicians/engineers
These professions have been at the center of numerous lawsuits, as employers and employees navigate the complexities of overtime pay requirements. The classification of these roles as eligible or exempt from overtime pay can be a contentious issue, often leading to legal disputes.
If your employer is not complying with overtime pay laws, you and your fellow employees may be eligible for substantial back pay. Reach out to us for a complimentary and confidential assessment of your case or to gain a better understanding of your employer’s overtime policies.
We’re here to help you navigate the legal aspects of overtime compensation.