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Understanding Minimum Wage and Overtime Pay in Labor Law

Editor's Note: Take a look at our featured best practice, HR Compensation Strategy (20-slide PowerPoint presentation). Compensation includes topics in regard to wage and/or salary programs and structures, for example, salary ranges for job descriptions, merit-based programs, bonus-based programs, commission-based programs, etc. (Also see the Related Info (including Benefits).) Compensation is [read more]

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When it comes to helping workers maintain a decent standard of living, the U.S. is among the countries around the world setting the bar high. The government has set forth stringent procedural rules and enforcement practices to protect employees from being underpaid or overworked.

However, it is not unusual for employers in the U.S. to pay less than expected and sometimes deny eligible workers overtime pay. If you suspect your employer is paying you less than you deserve, understanding minimum wage and overtime pay laws is the first step towards protecting your legal rights.

State and federal regulations on minimum wage and overtime pay

The federal government requires workers to receive a minimum wage and overtime pay for all hours worked beyond forty per week. Under the Fair Labor Standards Act (FLSA), minimum wages should not be less than $7.25 per hour. Additionally, this Act requires most employers in the country to pay employees at least one and a half times an employee’s regular hourly wage for hours worked over 40 in a workweek.

At the state level, minimum wage and overtime pay laws vary from one state to another. For instance, states like Washington and New York have minimum wages of $13.69 and $12.50, respectively.

However, other states like Georgia and Wyoming allow minimum wages below the federal level at $5.15 per hour. But that does not mean you shouldn’t collect the current Federal minimum wage of $7.25 per hour if your employer is subject to the FLSA.

If you suspect you were not adequately paid for your work or denied overtime pay, a reputable resource like FreeAdvice.com could help you understand your legal rights and options. The site offers the most useful, comprehensive, easy-to-understand, and balanced legal information so that you can seek the rightful compensation for unpaid wages or overtime pay from your employer.

What should you do if your employer fails to pay minimum wage or overtime pay?

Most employers will comply with the federal and state laws on minimum wage and overtime pay. However, some employers will not hesitate to pay less hourly rate than what is required. Others will take it a notch higher and steal tips or force employees to work off-the-clock.

If any of that happens to you during your employment period, you are eligible to file a lawsuit against your employer to collect compensation for wrongly denied overtime pay and any unpaid wages. However, it is essential to work with a reputable lawyer who understands local workers’ compensation laws. A skilled attorney will dedicate their time and legal resources to ensure you get the money you deserve.

Can I be retaliated against for filing a wage and hour lawsuit?

Sometimes employers retaliate against workers who file minimum wage or overtime pay lawsuits.

A good example is when an employer fires, demotes, reduces work hours, assigns undesirable shifts, cuts down job duties, or terminates an employment contract after filing a wage or hour lawsuit. In other instances, employers may retaliate by purposely giving false reviews to affect employees’ positions and earnings negatively.

No matter what form of retaliation happens to you, the U.S. Equal Employment Opportunity Commission and the state governments have laid out laws that protect victims of relitation like you. In other words, you may be eligible to bring a separate, individual lawsuit against your company for the retaliation.

Because of the complexity of workers’ compensation cases, it is vital to have a reputable attorney by your side. The right lawyer will help you prove your case beyond a reasonable doubt to reverse your employer’s retaliation and recover compensation for any resulting loss.

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The purpose of Human Resources (HR) is to ensure our organization achieves success through our people. Without the right people in place—at all levels of the organization—we will never be able to execute our Strategy effectively.

This begs the question: Does your organization view HR as a support function or a strategic one? Research shows leading organizations leverage HR as a strategic function, one that both supports and drives the organization's Strategy. In fact, having strong HRM capabilities is a source of Competitive Advantage.

This has never been more true than right now in the Digital Age, as organizations must compete for specialized talent to drive forward their Digital Transformation Strategies. Beyond just hiring and selection, HR also plays the critical role in retaining talent—by keeping people engaged, motivated, and happy.

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About Shane Avron

Shane Avron is a freelance writer, specializing in business, general management, enterprise software, and digital technologies. In addition to Flevy, Shane's articles have appeared in Huffington Post, Forbes Magazine, among other business journals.


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