Who is Entitled to Overtime Pay in New Jersey Under the Fair Labor Standards Act (FLSA)?
Several laws enacted at both the state and federal levels ensure overtime pay for eligible employees who work additional hours in excess of the standard 40-hour work week. For example, at the federal level, fair compensation for overtime work is guaranteed under the Fair Labor Standards Act of 1938, otherwise known as the FLSA. At the state level, a similar law called the New Jersey State Wage and Hour Law sets additional standards for overtime compensation.
Under these overtime laws, the rate of pay is calculated at 1.5 times an eligible employee’s normal rate of hourly pay. For example, if an employee is normally paid $14 per hour during the standard 40-hour work week, he or she would be entitled to an overtime pay rate of $21 per each hour of overtime work performed.
Most employees in New Jersey are entitled to overtime. Such employees are known as “non-exempt workers.” Though most types of workers are non-exempt, several exceptions, called “exempt workers,” are not covered by overtime laws. Examples of exempt workers in New Jersey generally include:
- Administrative Employees
- Bona Fide Executives
- Professional Employees
- Outside Salespersons
Like the workers listed above, salaried workers, or workers who are consistently paid over $455 per week, are typically exempt from overtime pay laws, which primarily apply to workers who are paid on an hourly basis. Though somewhat uncommon, exceptions can arise in which a salaried employee is entitled to overtime, depending on the nature of the overtime duties performed by the salaried employee.
If your employer has told you that you not eligible for overtime because you are a salaried employee, you should review your situation with an overtime pay attorney in case you are covered by overtime laws. Unfortunately, employers are not always truthful when telling employees they do not qualify to receive overtime pay. It is in your best interests to verify your overtime eligibility with a knowledgeable wage and hour violation lawyer.
Employees should also be aware that it is unlawful for employers to agree to allow employees to work overtime without providing the proper compensation. In other words, if you offer to work beyond the 40-hour week without accepting overtime, it is unlawful for your employer to accept. If you are a non-exempt employee, as are most workers in New Jersey, your employer must comply with the Fair Labor Standards Act, the New Jersey State Wage and Hour Law, and other laws requiring workers to receive adequate overtime for additional hours worked.