Overtime Exemption Advice from Experienced New York Employment Lawyers

We serve employees with overtime pay concerns in the New York City area

Understanding the complexities of state and federal overtime laws can be difficult, especially when reviewing the large number of exemptions available for employers. Businesses that meet exemption requirements are not legally required to provide overtime pay to employees.

At Hepworth, Gershbaum & Roth, our New York employment lawyers assist employers and employees looking to clarify the impact overtime laws have on their unique situations. Our knowledge of state and federal laws allows us to provide the practical translation you need to understand how each guideline applies to you.

What types of businesses are exempt from paying overtime?

Some businesses are exempt from overtime pay requirements. There are several factors that determine whether a business is exempt, including:

• Size: Business of certain size, generally with less than 20 employees, may be exempt from having to pay overtime wages to employees. Size may not be considered as a factor, however, if the organization’s value or annual profits exceed $500,000.

• Value: In general, businesses with more than $500,000 in annual revenue are required to pay overtime wages to employees. Businesses that do not meet these values may be exempt from overtime laws.

• Industry: Businesses active in specific industries, such as international shipping and agricultural operations, are exempt from overtime laws. These exemptions are based on the employer’s operating parameters and wage structure.

Exempt employees are not entitled to overtime pay

Salaried employees may be exempt from mandatory overtime pay, depending upon their specific roles and employer. Management level employees are often exempt, as are executives and some mid-level salaried employees.

Commissioned employees are also exempt from overtime laws if more than half of their earnings are based on sales. This includes sales reps who deal with automobiles, software

Overtime pay exemptions are generally vague, and are often exploited by employers looking to reduce payroll costs. This makes it important for all employees designated as exempt to carefully review the applicable laws to ensure the statutes have been applied properly.

Are other types of employees exempt?

In some situations, an employer may be subject to overtime laws, even though all of its employees are not entitled to overtime pay. Specific types of employees are not covered by overtime law, and are thus not entitled to overtime pay.

These roles vary greatly, but include:

• Commissioned sales representatives

• Computer professionals

• Commercial drivers

• Auto mechanics employed by car dealerships

• Employees at seasonal establishments such as ski lifts or water parks

• Farmhands

• In-home care providers

• Movie theater employees

• Delivery professionals

Because of the nature of these roles, overtime laws do not apply. In these cases, it is up to the employer to create their own overtime pay policies.

Find answers to your overtime exemption questions during a free consultation with a leading New York employment lawyer

The New York employment law attorneys at Hepworth, Gershbaum & Roth, rely upon more than 70 years of combined experience to assist clients during the search for clarity regarding overtime law exemption. If you are confused about your eligibility for overtime, it may be helpful to discuss your situation directly with one of our lawyers.

Contact us online or call 212-545-1199 to discuss your case during a free consultation with one of our New York employment law attorneys.