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IN EMPLOYMENT LAW

Exempt vs. Non-Exempt Employees

When a worker is classified as “non-exempt” it means that an employer is required by law to pay them overtime at time and one half their regular hourly rates under the Fair Labor Standards Act (FLSA) when working over forty hours per week. On the other hand, an employee who is classified as “exempt” is not required to be paid overtime by their employer under the FLSA, and is usually paid a set salary regardless of their hours worked during the week.

Who is Considered Exempt?

There is certain criteria that has been established by the FLSA that must be met in order for an employee to be considered exempt from receiving overtime pay under the law. They include executive, administrative, or professional exemptions. A worker may also be considered exempt if they work in outside sales or work in computer management role. Additionally to be considered exempt an employee must earn a salary of at least $455 per week and their job duties and responsibilities must also qualify as them as exempt:

  • Executive Exemption: If an employee’s job duties primarily involve managing a department of a business or the company as a whole, they may qualify as being exempt from overtime pay under the FLSA. Additionally, to be considered executively exempt, the employee must have the authority to hire or fire employees, or at least recommend these actions.
  • Administrative Exemption: If an employee’s job responsibilities primarily include managerial office work that relate to business operations they may be considered administratively exempt under the FLSA. The employee must also be able to make decisions and exercise discretion regarding important matters.
  • Professional Exemption: If an employee is considered professionally exempt from receiving overtime under the FLSA they must fall under these two subcategories: learned professional exemption or creative professional exemption. If an employee’s primary job duty requires them to use advanced knowledge typically acquired from a higher education like graduate school and exercise discretion and judgment they could fall under the learned professional exemption. If an employee’s job duties involve originality and invention for their work in a creative industry, they can be considered exempt under the creative professional exemption.
  • Highly Compensated Employees: If an employee is earning over $100,000 per year and is primarily responsible for office or non-manual work, they may also be considered as exempt from overtime pay if one or more their responsibilities fall under the executive, administrative, or professional employee exemption.

RECORD SETTING AWARDS AND SETTLEMENTS

FOR OUR CLIENTS


$19,100,000

$19.1 Million for Tipped Restaurant Workers. (pending court approval)

Workers such as servers, bussers, runners bartenders, barbacks and other tipped workers at a large national casual dining chain alleged they were owed wages. Their claims included but were not limited to: unpaid overtime, spread-of hours, misappropriated tips, uniform-related expenses and unlawful deductions.

$15,900,000

$15.9 Million for Personal Bankers.

The firm was able to recover overtime compensation for personal bankers and others similarly situated at a national bank that operates hundreds of branches throughout the United States. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales quotas but were not compensated overtime for their pay.

$14,500,000

$14.5 Million for Spam Text Victims

Fitapelli & Schaffer was able to recover damages for recipients of unwanted promotional text messages from a popular young adult clothing retailer. The clothing company allegedly violated the Telephone Consumer Protection Act by sending text messages to recipients’ cellular phones without their prior express written consent.

$7,000,000

$7.0 Million for Bank Loan Officers

The firm was able to recover overtime compensation for loan officers at a national bank that operates more than hundreds of branches nationwide. Employees in affected positions claimed they were required to work more than 40 hours a week in order to meet sales goals but were not compensated overtime for their pay.

$5,900,000

$5.9 Million for Commissioned Car Salesmen.

One of the largest auto dealerships in the NYC Metropolitan Area agreed to pay owed wages to its car salesmen. The company was accused of failing to pay salesmen the proper minimum wage, overtime pay, commissions, and made unlawful deductions from their earned wages in violation of federal labor laws.

$4,300,000

$4.3 Million for Personal Bankers

Even though personal bankers at this nationwide bank were classified as exempt from receiving overtime pay, the company routinely required them to work in excess of 40 hours per week. There are federal laws that help protect workers from misclassification and in this situation; Fitapelli & Schaffer was able to recover unpaid overtime for personal bankers throughout the United States.

$4,300,000

$4.3 Million for Entertainers at Gentleman’s Clubs

F&S represented entertainers at a popular gentleman’s club in New York City that claimed the club failed to pay them the proper wages. The entertainers were able to recover owed wages that included unpaid minimum wages, overtime pay, spread-of-hours pay, unlawfully retained tips, unlawful deductions, and uniform-related expenses.

$3,600,000

$3.6 Million for Tipped Employees at Upscale Restaurant

Tipped workers alleged that a Mexican Michelin rated restaurant with 17 locations denied them overtime pay, minimum wages, and call-in pay. Our firm was able to recover wages for these tipped employees that included servers, bussers, bartenders, food runners and barbacks.

$3,400,000

$3.4 Million for Assistant Managers at Bank

Fitapelli & Schaffer successfully recovered unpaid overtime for assistant managers on a salary at a bank with locations nationwide. The salaried workers argued that they were wrongfully classified as exempt from receiving overtime when working over 40 hours per week.

$3,000,000

$3.0 Million for Bank Loan Officers

The fast food chain allegedly misclassified its assistant managers as salaried workers and considered them exempt from receiving overtime pay when working over 40 hours per week. Fitapelli & Schaffer was able to recover overtime compensation for all of the popular fast food chains’ assistant managers nationwide, with the exception of California.

$2,836,000

$2.9 Million for Tipped Restaurant Employees.

Fitapelli & Schaffer was able to recover unpaid minimum wages, overtime, spread-of hours, and unlawful deductions for tipped restaurant workers at a popular dining chain. Affected workers included servers, bussers, runners bartenders, barbacks and other tipped workers.

$2,250,000

$2.25 Million for Tipped Workers at Chain Sports Bar

proper minimum wage and overtime. Fitapelli & Schaffer helped the workers recover owed wages to the following positions: servers, bussers, bartenders, and other tipped workers under federal and state labor laws.

$2,000,000

$2.0 Million for Bank Loan Officers

Fitapelli & Schaffer was able to successfully recover unpaid overtime for loan officers at a nationwide bank that operates over one thousand locations across the United States. Loan officers for the company alleged that even though they were hourly employees and consistently worked over 40 hours per week they were working off the clock and not getting overtime pay.

$1,950,000

$1.95 Million for Health Care Workers

A New York based health insurance provider allegedly had its health care workers working over 40 hours per week but required they submit weekly timesheets that only showed they worked 37.5 hours. Fitapelli & Schaffer was able to successfully recover compensation for unpaid wages, overtime and spread of hours pay.

CONTACT

FITAPELLI & SCHAFFER LLP


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