Halilburton must pay $18 million to resolve a Fair Labor Standards Act
(FLSA) claim that for a mistake that is considered the number one thing
not do when compensating salaried employees. According to recent employment
law news, the company automatically declared all salaried employees “exempt”
from overtime, without considering duties or income at all. Treating all
employees similarly without looking at variations in pay and job responsibilities
is a very common mistake employers make, and is often a violation of federal
Pursuant to the FLSA, whether a worker is considered exempt vs. non-exempt
can make a large difference in an employee’s take home pay. Non-exempt
workers are entitled to receive overtime compensation at a rate of one
and one-half their standard hourly pay for all time worked in excess of
40 hours in any one workweek. Alternatively, workers who are exempt are
not entitled to receive overtime pay, regardless of how many hours they work.
However, in order to determine whether an employee is exempt, the employer
must determine first whether they meet the “salary basis”
test – i.e. the minimum salary threshold for being considered exempt
(currently $455/week) and whether their job duties fit within one of the
enumerated exemptions – professional, administrative or executive.
Broadly classifying all workers as exempt fails to properly evaluate each
of these factors.
According to reports, Halliburton improperly categorized 28 positions as
exempt from overtime, requiring them to pay 1016 workers back pay and overtime.
For more information, or if you believe you have been misclassified and
improperly denied overtime pay, please contact the knowledgeable
Georgia overtime pay lawyers at Buckley Beal, LLP for an immediate consultation.