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Salaried workers and overtime


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#1 njdad83

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Posted 27 December 2012 - 10:46 AM

I work for a New Jersey company that employs around 25 people. Nearly everyone in the company (maybe all but one or two) is paid on salary. We do not fill out time sheets. We do not receive overtime benefits if we work more than a 40 hour week. Does anyone know if this is legal? Reviewing the state's laws, it appears that being on salary does not exempt the company from paying overtime, unless you are in a management position. This seems pretty cut and dry to me. Am I misunderstanding this law?

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Every employer shall pay to each of his employees wages at a rate of not less than $5.05 per hour as of April 1, 1992 and, after January 1, 1999 the minimum hourly wage rate set by section 6(a)(1) of the federal "Fair Labor Standards Act of 1938" (29 U.S.C. s.206(a)(1)), and, as of October 1, 2005, $6.15 per hour, and as of October 1, 2006, $7.15 per hour for 40 hours of working time in any week and 1 1/2 times such employee's regular hourly wage for each hour of working time in excess of 40 hours in any week, except this overtime rate shall not include any individual employed in a bona fide executive, administrative, or professional capacity or, if an applicable wage order has been issued by the commissioner under section 17 (C.34:11-56a16) of this act, not less than the wages prescribed in said order. The wage rates fixed in this section shall not be applicable to part-time employees primarily engaged in the care and tending of children in the home of the employer, to persons under the age of 18 not possessing a special vocational school graduate permit issued pursuant to section 15 of P .L.1940, c. 153 (C.34:2-21.15), or to persons employed as salesmen of motor vehicles, or to persons employed as outside salesmen as such terms shall be defined and delimited in regulations adopted by the commissioner, or to persons employed in a volunteer capacity and receiving only incidental benefits at a county or other agricultural fair by a nonprofit or religious corporation or a nonprofit or religious association which conducts or participates in that fair.

#2 Fallen

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Posted 27 December 2012 - 10:53 AM

Salary vs. hourly is just a pay/accounting method. Someone doesn't have to be a manager to be exempt. You haven't bothered to say what it is you do for a living, so we can't know whether you're non-exempt. If you read up about "exempt vs. non-exempt" and you believe you're entitled to overtime, then you discuss that with the NJ labor dept. or nearest federal DOL wage-hour division office.

I'll echo PG's advisory "warning" with a twist: (Many) legal issues are complicated. Explanations and comments here might not fully identify or explain the ramifications of your particular problem. I do not give legal advice as such (and such is impermissible here at any rate). Comments are based on personal knowledge and experience and legal info gleaned over a quarter century, and every state has differing laws on and avenues to address most topics.  If you need legal advice, you need to consult (and pay) a professional so that you may have someone to hold accountable.  Acting on personal and informational advice from a stranger on the internet is a bad idea -- at least not without your own thorough due dilience/research and confirmation as it applies to your situation.  :)


#3 Guest_FindLaw_Amir_*

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Posted 27 December 2012 - 11:32 AM

To learn more about this subject matter, you may wish to visit the Employment Law Center: Wages and Benefits and read Wage and Hour Laws as a good resource.

#4 Tax_Counsel

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Posted 31 December 2012 - 02:46 PM

Reviewing the state's laws, it appears that being on salary does not exempt the company from paying overtime, unless you are in a management position. This seems pretty cut and dry to me. Am I misunderstanding this law?


You are misunderstanding it. The statute doesn’t just exempt persons in management. It exempts employees who are, to quote the applicable NJ Department of Labor and Worforce Development (DLWD) regulation, “employed in a bona fide executive, administrative, professional or outside sales capacity.” New Jersey Admin. Code § 12:56-7.1. NJ adopts the federal regulations with respect to those four categories of exempt employees. (Federal law exempts other categories from the federal overtime law that NJ does not, however, and those other exemptions are not adopted by NJ). The U.S. Department of Labor has a web page with links to these four categories that will explain each exemption. You'll find that here: DOL Overtime Advisor. You may find that the issue might not be as “cut and dried” as you think.

If you have questions about whether you are truly exempt, contact the NJ DLWD or discuss the matter with a local employment law attorney.




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