It is very common for workers to be told by their employers that they are either independent contractors and not employees or that they are exempt from overtime because they are being paid a salary. In either case, employees could still be entitled to unpaid wages. In fact, just because an employer tells a worker that the worker is not entitled to overtime wages does make it so. Likewise, any document that the worker signs stating that the worker is not an employee does not control and may be declared unlawful.
The Fair Labor Standards Act is the federal law that governs the payment of wages to employees. Under the Fair Labor Standards Act, an employee is entitled to overtime wages unless the employer can establish that the worker is exempt from overtime. To be exempt from overtime, an employee normally has to be paid a guaranteed weekly salary and also to perform certain duties. That means that if an employee is not paid a guaranteed weekly salary, the employee could be entitled to overtime wages. Similarly, if an employee is paid a guaranteed weekly salary, but does not perform the required duties, the employee could still be entitled to overtime wages.
Additionally, the Department of Labor has explained that to determine whether a worker is an employee (entitled to overtime wages) or an independent contractor depends upon an evaluation of several factors, including the following:
(1) Opportunity for profit or loss depending on managerial skill.
(2) Investments by the worker and the potential employer.
(3) Degree of permanence of the work relationship.
(4) Nature and degree of control.
(5) Extent to which the work performed is an integral part of the potential employer’s business.
(6) Skill and initiative.
Labels given to the worker by the employer do not control. Instead, a determination is to be made based upon the actual work that is performed and the relationship between the worker and the company. The ultimate question is whether the worker is operating an independent business. If not, the worker could be deemed an employee entitled to overtime wages.
At Hodges & Foty, LLP, we understand that navigating the complexities of employment law can be a daunting task for many individuals. As experienced wage & hour claims lawyers, we can help you by providing clear and comprehensive legal advice tailored to your specific situation. Whether it is understanding your rights as an employee, addressing concerns about misclassification, or your right to overtime wages, our team of wage & hour claims attorneys is equipped to guide you through every step of the legal process.
Our goal is not only to address the immediate legal issue at hand but also to provide guidance that helps prevent future legal difficulties. At Hodges & Foty, LLP, our wage & hour claims lawyers are committed to standing by your side, offering the legal support and representation you need to navigate the challenging landscape of employment law.
We pride ourselves on our track record of achieving favorable outcomes for our clients, adeptly navigating the intricacies of these complex legal situations. If you believe that you have been misclassified and are entitled to different wages or benefits, do not delay in reaching out to one of our wage & hour claims attorneys for assistance. Contact Hodges & Foty, LLP at (713) 523-0001 or through our contact form for comprehensive legal support tailored to your unique situation.