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Wages and Compensation
Wages and compensation is one of the most intricate and complicated areas of employment law. It covers how employees are paid, when they are paid, what may be deducted from their pay, the records that must be maintained, who is eligible for overtime pay, wage discrimination, child labor, minimum wages and dozens of special exceptions according to occupation and industry. State and federal laws also provide for adminstrative complaint procedures and civil lawsuits to recover lost pay and overtime and provide protections for employees who complain about illegal pay practices.
Employers and employees are both often confused about wage and hour laws. Many persons are paid as contractors who are really employees, and many employees who are entitled to overtime pay do not receive it. Often, years go by and the errors are compounded every week resulting in large liabilities. If a group of employees are improperly paid, the employer's liability to the class may run into the millions of dollars. Paying employees correctly is probably the most important thing an employer can do.
Generally, managers, professional employees like doctors and lawyers, and administrative employees who exercise independent discretion and judgment in matters directly related to the management or general business operations of the employer or its customers are exempt from overtime requirements. Employers prefer to classify employees as "exempt" and pay them a weekly salary regardless of hours worked, and employees often prefer "exempt" status as a sign of prestige. However, the law does not allow employers and employees to agree on the status they like and employees cannot waive their rights to overtime. What matter is what the employee actually does the majority of his or her day, and not what the employer calls them.
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