The federal Fair Labor Standards Act (FLSA) allows employers to pay their workers in a variety of ways, including an hourly wage, an annual salary, by the day, by the job, or on commission. But no matter how employees are paid, the FLSA requires the amount to be no less than the federal minimum wage, which is currently set at $7.25 per hour.
In addition to the minimum wage, the FLSA also defines overtime as any time spent working after eight hours a day or forty hours a week. For all overtime worked, employees are entitled to one and one-half times their normal rate of pay, regardless of the method of their payment. The FLSA does allow for certain types of employees to be held exempt from the overtime requirement, but it is very specific about the qualifications employees need to meet in order to be legally considered overtime exempt.
According to a recent collective action wage and hour lawsuit against Citizens Bank, the financial company allegedly deducted overtime wages from its mortgage loan officers. U.S. District Judge Arthur J. Schwab recently certified the collective action, which means all the eligible employees who worked at Citizens Bank as mortgage loan officers will have the opportunity to opt into the collective action and submit their claims for relief. Those claims will then be used to determine how much the plaintiffs receive if the lawsuit is settled or awarded to the plaintiffs. Continue reading ›