How Does Ohio Handle Pay Disputes for Unpaid Overtime?

What State and Federal Laws Protect Overtime Compensation?

The Fair Labor Standards Act laid the foundation for the legal recognition of overtime pay. The act mandates that employees working more than 40 hours in a seven-day period be paid at one and a half times their established hourly rate.

The State of Ohio does not expand upon the federal overtime laws but rather echoes the law by mandating overtime pay for hourly workers on the state level.

What Factors Lead to Unpaid Overtime?

Several situations warrant the pursuance of unpaid wages, such as:

An employer misclassifies a worker as an exempt employee, meaning the worker is classified as not eligible for overtime when they qualify.
An employer misclassifies a worker as a contractor instead of an employee.
Travel time is not adequately compensated, regardless of being away from home or traveling during the day as a principal activity.
An employer is paying below minimum wage.
The employer deducts meal breaks despite the employee not receiving an uninterrupted meal period.
The employer requires unpaid pre or post-shift work.
The employer illegally rounds working time in a way that results in underpayment for hours worked.
An employer requires off-the-clock work.

Who is Exempt from Overtime Pay?

Not all employees are entitled to overtime. Salaried workers, for example, are not paid hourly, which allows their employers to avoid compliance with overtime wage laws.

Despite working closely with an employer, contractors are not considered employees and, therefore, are not protected by overtime laws.

To decide if a worker is a contractor or an employee, the economic realities of the working relationship are considered, which evaluates how economically dependent the worker is on the business of the employer. Factors considered are:

How integral the work is to the business
If the worker’s skills affect their opportunity for profit or loss
The investments in equipment and facilities of the worker and the employer
If the worker implements independent business judgment
The sustainability and permanence of the working relationship
The extent of the employer’s control regarding when and how the work is completed

Bartenders, waiters, and other tipped workers also do not receive overtime benefits.

Certain high-level employees will not receive overtime pay even though they may work more than 40 hours a week. These individuals include:

Professional positions, such as an attorney
Outside sales workers
Administrative workers
Certain computer workers
Executives

Additionally, the law excludes specific professions, such as babysitters, transportation workers, farm workers, housekeepers, and non-profit children’s camp workers.

It is a common misconception that interns do not have to be paid. However, for-profit businesses must pay interns unless the internship satisfies certain requirements. An internship may be unpaid if:

The internship is comparable to training that would be offered in an educational environment.
The internship only benefits the intern.
The intern does not displace employees and works under direct supervision.
The employer does not benefit from the intern and may even have impeded operations because of the intern.
The intern is not assured a job at the end of the internship.
Both employer and intern understand that the intern is not entitled to compensation for time.

How do These Violations Occur?

Overtime violations involving an employer that requires overtime but fails to pay are easy to identify. However, some employers manipulate schedules so that an employee works more than 40 hours, but the time is split into different calendar weeks to appear below the 40-hour threshold.

Refusing to pay overtime is a form of wage theft, and employees have the right to hold employers accountable.

Examples of wage theft include:

Taking tips from the worker.
Failure to record and report working hours.
Pay deductions without proper consent.
Misclassifying workers as contractors or exempt from overtime.
Not allowing tipped employees to receive overtime.

An employee may find it beneficial to seek payment from an employer through civil court. A civil suit will allow the employee to recover back pay for wrongfully withheld wages, liquidated damages, attorney’s fees, and court costs.

How to Pursue an Unpaid Overtime Claim?

The most important aspect of a wage theft claim is a comprehensive record of hours worked and received pay. It is the employee’s responsibility to obtain and maintain these records for a successful claim.

Employees who are required to work off the clock should take photos documenting the times they clocked out and when they actually left the business.

The next step involves the help of an attorney at Watson Kuhlman, LLC, to ensure that all possible avenues of recovery are considered. An attorney will use the law to ensure the reception of owed wages.

What Compensation may be Pursued in an Overtime Claim?

Compensation for employees with unpaid overtime wages falls into two main categories:

Unpaid overtime: The employee should be fairly compensated for owed wages. An employer failing to pay an overtime rate or not paying altogether may cause inaccurate wages.
Liquidated Damages: An employer in violation of overtime laws may be required to pay liquidated damages in addition to the missed wages. Liquidated damages compensate an employee for being deprived of rightful wages from the time they were owned until the amount is paid. Liquidated damages are equal to the amount of unpaid wages and are sometimes referred to as “double damages.” For example, if an employee is owed $10,000 in unpaid wages, they will also receive $10,000 for liquidated damages.

Do You Need an Attorney?

If you are pursuing an unpaid overtime claim, then you are going up against your company and your company’s lawyers. To reclaim what you are rightfully owed, you need the lawyers of Watson Kuhlman, LLC, by your side. Call us today at 216-208-7858 or complete a contact form to schedule your free consultation.