Overtime compensation and the Fair Labor Standards Act

| Feb 1, 2017 | Uncategorized

Although the state minimum wage in Michigan currently stands at $8.15 per hour, federal minimum wage holds still at $7.25, a rate it’s been at since 2009. The Federal Labor Standards Act is the law that governs both overtime and minimum wage for nearly all businesses engaged in interstate commerce.

Under the FLSA, states can offer higher minimum wage and overtime requirements than the federal law, but not below it. In the event there is a conflict between state and federal law on the subject, the law with the highest minimums will supersede the other.

Under Michigan law, as is the case with the FLSA, if an employee works more than 40 hours in a given week, he or she is entitled to 1 1/2 times his or her normal compensation. That being said, they only qualify for such compensation for the period of time worked exceeding 40 hours.

That law is inapplicable for those who work more than eight hours in a given day, on holidays or weekends (unless that time is in addition to 40 hours.) Oftentimes, for unionized workers, their contracts mandate their employers pay them overtime in those instances.

According to Michigan law, if you are employed in a supervisory, professional or administrative role, and earn at least $250 per week, state overtime laws do not apply. Additionally, an executive whose primary responsibilities are managerial in nature and who has at least two employees under his or her supervision is exempt.

Administrative staff involved in nonmanual work, such as the shaping of management policies, business or duties, or who works in a educational setting, is also excluded. The same goes for professionals who possess knowledge in science or learning forms the basis of their primary responsibilities.

If you or someone you know has been inadequately compensated under federal or Michigan state overtime law, the advice and counsel of an experienced Michigan FLSA attorney may be your solution to you receiving the remuneration you deserve.

Source: BLR.com, “Michigan exempt employees: what you need to know,” accessed Feb. 01, 2017