First and foremost, commerce is a word that is used to describe many different things. For instance, many people use it to describe any form of trade, transportation, transaction or even communication between any US state and any area outside that state. For instance, employees that can be considered that were involved in commerce under FLSA include employees who use fax machines, phones, mails, email and other similar tools to communicate with individuals outside the state. In addition, the use of electronic devices (POS terminals) means being involved in commerce. It is up to the judge to determine whether anyone was involved in commerce.
The FLSA says that every employer must pay their employees at a rate that is at least 150% their normal rate when they are working for more than 40 hours in one week. Many experts call this time-and-a-half pay for overtime. The normal rate is the rate paid during the week when the overtime is calculated. So calculating an overtime rate is not very difficult.
There are a huge number of employees who call on exemption when they don’t want to pay overtime. It is very likely that the administrative and executive exemptions
are the most common ones although there are many more types. In order to get the right for an executive exemption, the defendant should prove that your basic task was to handle the department of the company. For instance, an executive director will probably be exempt under this Act in case they’ve managed the work of two or more employees and were allowed to hire/fire other ones. When it comes to administrative exemption, the situation is a little bit different. In cases like this, the other party must show that the employee’s task was the activity that was directly linked to the handling business operation of the employer and that they have used discretion due to the importance of the matter. In most cases, office managers are qualified for administrative exemption. Those who want to be sure whether they were exempt employees or not, should not forget that the most important thing is the activities they have taken not the description of the job in a written form. So, in case you are a manager (that’s your job position and description), but you actually perform activities designed for front desk clerk, you can’t expect exemption and paid overtime.
We hope that this article will clear all your dilemmas related to overtime lawsuits.