In a sluggish economy, people who complain about their employer tend to hear something like “you should feel lucky to even have a job.”  Perhaps there is some truth to that statement.  However, most people would probably agree that it would be unacceptable to tell a woman lamenting over her abusive husband to feel fortunate that she has someone in her life.  In short, regardless of the climate that is the job market, the rules governing the employer-employee relationship still apply with full force.

One such rule is the requirement that the employer pay its employees overtime pay.  The regulation of minimum wage is governed by parallel state and federal statutes, the Michigan Minimum Wage Law (MWL) and the Fair Labor Standards Act (FLSA).  Both acts provide that work in excess of forty hours a week must be compensated at a rate of 1 ½ times the regular wage rate.  For example, if an employee has an hourly rate of pay of $10.00 per hour and works 50 hours per week, he is entitled to $10.00 per hour for the 40 regular hours and $15.00 per hour for the 10 overtime hours, for a total of $550.00.  

An employer that fails to pay its employees overtime pay can be compelled to pay an aggrieved employee twice the unpaid overtime pay plus attorney fees if the employee files a lawsuit.  Using the example above, if the employer pays the employee $500.00 for the week (that is, $10.00 per hour for all 50 hours worked, instead of paying the increased rate of $15.00 per hour for the 10 overtime hours), then the employee can sue the employer for $100.00 for each week that the employer failed to pay the proper overtime pay (twice the $50.00 per week that the employer failed to pay).  The law provides for this increased liability against the employer so that the employer is not rewarded for shorting people their pay and then daring their victims to file suit.

There are some exceptions to the overtime pay requirement.  Certain job classifications are not entitled to overtime pay.  For example, managers and other “white-collar” employees are not entitled to overtime pay.  So, if a manager works 50 hours most weeks for a fixed salary of $500.00 but then works 100 hours in one week for that same salary, the employer incurs no liability for unpaid overtime.  

Employers know this and sometimes misclassify their employees as “managers” or other exempt positions to get around the overtime pay requirement.  Simply calling someone a “manager” is not enough to circumvent the overtime pay requirements.  The person must actually have all of the duties expected of someone with that title.

If you believe that you are wrongfully being denied overtime compensation, it is a good idea to seek the advice an attorney with knowledge of this area of law. 

— Kassem Dakhlallah is a partner with Jaafar & Mahdi Law Group, P.C.  His practice focuses on complex litigation including class actions, representative actions, commercial litigation, civil forfeiture and personal injury. He can be reached at (313) 846-6400 and kassem@jaafarandmahdi.com