Skip to content

Menu

LexBlog, Inc. logo
NetworkSub-MenuBrowse by SubjectBrowse by PublisherJoin the NetworkGet StartedSubscribeSupportContact
Search
Close

When do employers need to pay overtime?

By Scott Atwood on November 16, 2020
Email this postTweet this postLike this postShare this post on LinkedIn

Regardless of who you supported in the recent Presidential election, one thing both candidates agreed on was that the Fair Labor Standards Act, or FLSA, is not going away. The FLSA is a Depression-era law that has seen relatively little change in nearly 90 years. It created a federal minimum wage and required that most employees be paid overtime of 1.5 times their regular hourly rate when an employee works more than 40 hours in a workweek. So why, after so many years, do employers regularly trip up on this law, sometimes costing them in the hundreds of thousands of dollars?

Common FLSA Misconceptions

Some employers have come up with some “creative” ways to avoid paying overtime, but the law is very unforgiving. Unless you fall into some very narrow exemptions, such as management, outside sales, or an office administrative job with substantial independent discretion, you likely owe the employee overtime if it’s earned.

Below are five misconceptions employers often make include:

  1. Thinking that paying an employee a “salary” means you don’t have to pay overtime. It’s true that you cannot be exempted from overtime unless you pay someone a salary (which must be at least $35,467), but you have to also look at job duties.
  2. Agreeing with an employee not to pay overtime if the employee is entitled to overtime. You can agree, but if the employee later says he worked overtime and you didn’t pay him, that’s not a defense. You will have to pay the overtime. And double damages. And attorney’s fees.
  3. Calculating overtime using more than one workweek. Employers who pay their employees bi-weekly may think they just need to make sure the employee doesn’t work more than 80 hours total. Employers need to look at each week individually. If the employee works more than 40 hours in a single week, you must pay overtime.
  4. Calling someone a “manager” just to make the person exempt from overtime. The person has to supervise at least two people, and have real decision making authority, such as hiring, firing, and evaluating the employees.
  5. Calling your “1099 employee” an independent contractor. Employers should resist the temptation to label individuals who regularly work for them in jobs that are closely related to the business (like a roofer for a roofing company; landscaper in a landscaping company) as 1099 independent contractors. They are almost always employees. Along those same lines, if your worker agrees that he will be a 1099 independent contractor, don’t bite. He can later come back and seek overtime if you haven’t paid it, even if you “agreed” he was 1099. The law doesn’t allow you to agree to break the law.

The FLSA is really a minefield of confusing pay requirements and job classification ambiguity. Even the best-intentioned employers often make mistakes.

Employers needing guidance in this area or assistance with a Department of Labor audit or lawsuit may contact me at scott.atwood@henlaw.com or by phone at 239-344-1287.

Photo of Scott Atwood Scott Atwood

From complex labor and employment counseling and litigation to general business matters, Scott has been representing the interests of entrepreneurs, public entities, and businesses of all sizes throughout the United States, including Florida and Georgia, for nearly 25 years.

More specifically, Scott has…

From complex labor and employment counseling and litigation to general business matters, Scott has been representing the interests of entrepreneurs, public entities, and businesses of all sizes throughout the United States, including Florida and Georgia, for nearly 25 years.

More specifically, Scott has extensive experience in all aspects of employment law, including Title VII, ADA, ADEA, and Section 1983 discrimination, harassment, and retaliation matters, FMLA leaves issues, and FLSA and state law wage situations. He also assists his clients in whistleblower claims and non-compete, non-solicitation, trade secret, and contract disputes. With regard to general corporate matters, he prepares employment agreements, operating and shareholder agreements, restrictive covenant (non-compete, non-solicitation, confidentiality) agreements, and business contracts.

Scott also brings his expertise as a Florida Supreme Court Certified Circuit Civil Mediator to facilitate a resolution as an alternative to lengthy and expensive litigation. As a member of the Executive Council of the Florida Bar’s Labor and Employment Section, Scott is extremely active in helping formulate and implement legal policy on both the state and local level. He is admitted to practice in all state and federal courts in Florida and Georgia, including U.S. District Courts for the Southern and Middle Districts of Florida.

Scott has been recognized as a Florida Super Lawyer in labor and employment law. Previously, he was recognized by Atlanta Super Lawyers as a Rising Star in labor and employment law. While attending law school, Scott was elected Editor-in-Chief of the Florida Journal of International Law and was awarded the President’s Award for outstanding service to the University. He now serves on the College of Law’s Alumni Council.

Scott has two children, Caroline and Laura. They both attended Fort Myers High School’s IB program, and Caroline is now attending Scott’s alma mater, Dartmouth. Scott is married to Kristalyn Loson Atwood, who is also an attorney. When not working, Scott enjoys spending time with his family, traveling, and watching New England sports.

Read more about Scott AtwoodEmailScott's Linkedin Profile
Show more Show less
  • Posted in:
    Employment & Labor
  • Blog:
    Southwest Florida Business and IP Blog
  • Organization:
    Henderson, Franklin, Starnes & Holt, P.A.
  • Article: View Original Source

Call us at 1-800-913-0988 or email sales@lexblog.com.

Facebook LinkedIn Twitter RSS
The Library at LexBlog
  • About LexBlog
  • The Field We Built
  • Library at LexBlog
  • Our Beliefs
  • Our Team
  • Contact LexBlog
  • Disclaimer
  • Editorial Policy
  • Terms of Service
  • Get Started
  • Publishing Solutions
  • Compass
  • Submit a Request
  • Support Center
  • System Status
Copyright © 2026, LexBlog, Inc. All Rights Reserved.
Law blog design & platform by LexBlog LexBlog Logo