Employers Who Pay their Employees a Salary Could Still Owe Overtime Wages

Time and time again we talk with experienced business owners who make big mistakes when it comes to deciding whether someone is entitled to minimum wage or overtime under the federal Fair Labor Standards Act (FLSA). Here is a common mistake made by Houston, Sugar Land and Stafford TX employers concerning their employees and wages: Big Mistake Employers make: We pay our employees a salary, so we don’t owe them overtime. Just because an employee is paid a salary has nothing to do with whether they are entitled to overtime compensation. The true test is whether that employee can be classified as an exempt or non-exempt employee. Some examples of exempt employees are executives, professionals, and certain sales employees, to name a few categories. Additionally, salary employees must generally be paid not less than $455 per week. Garcia-Martin & Martin, P.C., is a business and employment law firm located in Stafford, Texas. Their attorneys work with businesses and individuals in all types of business and employment matters throughout the Houston, Texas area. They can be reached at (281) 277-3066. You may also visit their website at www.mgmartinlaw.com for additional information and practice areas.