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Do I have to pay overtime?

     July 24, 2012


Question:

Jennifer,

How do I know if I have to pay my practice employees overtime?

Thanks,
Dr. I

Answer:

Both New York State and Federal law require payment of overtime for all employees, except those employees who fall into a designated exemption category.  The exemption categories are where many practice owners start getting confused, because both NYS and Federal law have an “administrative” employee exemption category and an “executive” employee exemption category.  Each exemption category lists a number of factors an employee’s job must entail for that employee to qualify for the exemption.  Before providing the exemption categories and factors, I want to relay that because the exemption categories are a factor test, there is not bright-line rule as to whether an employee qualifies or does not.  So, if you are challenged by an employee that you are not paying proper overtime, the factor test will be invoked and you may find yourself in trouble if you have in your mind used the factors available in your favor to classify an employee as exempt when an argument may be made they are not exempt.  Also, let me take this opportunity to stress to benefits of EPLI insurance for those owners out there who do not have it in place.  Protect your practice through insurance against claims by employees.  Click here for prior newsletter on EPLI.

Below are the NY exemption categories referenced above and factors -

Administrative Exemption (New York Minimum Wage Act) –

The employee must meet all of these tests to qualify for the Administrative employee exemption: http://www.labor.ny.gov/sites/legal/counsel/pdf/administrative-employee-overtime-exemption-frequently-asked-questions.pdf.
 
Executive Exemption (New York Minimum Wage Act) -

To qualify for the Executive employee exception, an individual must meet all of the following tests: For more info click here - http://www.labor.ny.gov/sites/legal/counsel/pdf/executive-employee-overtime-exemption-frequently-asked-questions.pdf.
 
Have a practice located outside New York, the Federal Fair Labor Standards Act provisions related to fair pay are located here - http://www.dol.gov/whd/regs/compliance/fairpay/fs17a_overview.htm.  You will notice the requirements are familiar after having reviewed New York’s requirements.  If you are practicing in another state, be sure to have a review of your State’s requirements, as States have the option of imposing stricter regulations than Federal.

 

Copyright © 2012 by Kirschenbaum & Kirschenbaum PC.

All Rights Reserved. This email is provided for news and information purposes only and does not constitute legal advice or an invitation to an attorney-client relationship. While every effort has been made to ensure the accuracy of the information contained herein, Kirschenbaum & Kirschenbaum PC does not guarantee such accuracy and cannot be held liable for any errors in, any reliance upon this, or losses caused by the information. Under New York's Code of Professional Responsibility, this material may constitute attorney advertising. Prior results do not guarantee a similar outcome.


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